Digital Transformation and Investment Efficiency of Firms:Evidence from Annual Report Textual Analysis
This paper employs the financial report data of A-share listed companies from 2007 to 2022 and defines the degree of firm digital transformation using textual analysis to conduct word frequency statistics.This paper finds that digital transformation can significantly restrain firms'inefficient investment.Further test uses the Special Action Plan for the Deep Integration of Infor-matization and Industrialization(2013-2018)introduced in 2014 as an exogenous shock.The PSM-DID test shows that the investment efficiency of pilot enterprises has improved significantly after the policy implementation.The mechanism test shows that digital transformation has a posi-tive impact on investment efficiency through the internal channels of strengthening corporate gov-ernance and the external channels of enhancing the supervisory role of the capital market.Heter-ogeneity analysis shows that digital transformation has a stronger effect on investment efficiency in enterprises with lower financing constraints,lower annual report readability,and higher industry concentration.Additionally,digital transformation brings about the economic consequences of in-creasing digital R&D and more digital patents,which improves the business performance of enter-prises.
digital transformationinvestment efficiencycorporate governancestock price in-formation
NETL
NSTL
万方数据
