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Impact of interlocking directors with digital experience on corporate digitalization: Evidence from China

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  • Li, Wentao
  • Li, Xue
  • Peng, Lanying
  • Yao, Zhenye

Abstract

We examine the impact of interlocking directors with digital experience on corporate digitalization. Using a sample of Chinese listed firms from 2007 to 2021, we find that interlocking directors with digitalization experience have significant positive effect on the focal firm’s digitalization. Mechanism analyses further indicate that these interlocking directors play a pivotal role in enabling firms to reduce information asymmetry and alleviate financial constraints by weakening managerial myopia in the focal firm. Cross-sectional analyses highlight that the favorable effect of such interlocking directors mainly exists in non-SOEs and firms with younger CEOs.

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  • Li, Wentao & Li, Xue & Peng, Lanying & Yao, Zhenye, 2024. "Impact of interlocking directors with digital experience on corporate digitalization: Evidence from China," Finance Research Letters, Elsevier, vol. 62(PA).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324001727
    DOI: 10.1016/j.frl.2024.105142
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    Cited by:

    1. Li, Wentao & Li, Xue & Peng, Lanying & Ning, Chong, 2024. "Silent actions: Digital transformation in private enterprises with state equity participation," Finance Research Letters, Elsevier, vol. 65(C).

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