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Enterprise digital transformation and stock price crash risk

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  • Liang, Zhentang
  • Zhao, Yunying

Abstract

This paper examines the mechanism of corporate digital transformation to reduce the risk of stock price crash by selecting a sample of Chinese A-share listed companies from 2013 to 2021. It is found that corporate digital transformation reduces the risk of stock price crashes; corporate digital transformation significantly improves internal governance, thus reducing the risk of stock price crashes; and corporate digital transformation significantly improves analyst attention, thus reducing the risk of stock price crashes.

Suggested Citation

  • Liang, Zhentang & Zhao, Yunying, 2024. "Enterprise digital transformation and stock price crash risk," Finance Research Letters, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323011741
    DOI: 10.1016/j.frl.2023.104802
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    References listed on IDEAS

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    Cited by:

    1. Zhou, Huiyang & Wang, Ruzhou & Zhang, Xiyu & Chang, Minyen, 2024. "The impact of digital technology adoption on corporate supply chain concentration: Evidence from patent analysis," Finance Research Letters, Elsevier, vol. 64(C).
    2. Zhang, Cheng & Fang, Jiming & Ge, Shilong & Sun, Guanglin, 2024. "Research on the impact of enterprise digital transformation on carbon emissions in the manufacturing industry," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 211-227.
    3. Sun, Guanglin & Yin, Ding & Kong, Tao & Yin, Lei, 2024. "The impact of the integration of the digital economy and the real economy on the risk of stock price collapse," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).

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