In the current era of rapid digital transformation of enterprises,the CEO equity incentive is considered to be a power-ful tool to increase the willingness of companies to embrace digital transformation.However,the effectiveness of this theoretical consensus varies in practice.To address this discrepancy between theory and practice,this study,based on the upper-echelon theory and motivation theory,employed the econometric analysis to empirically examine the impact of CEO equity incentives on firms'willingness to implement digital transformation by using a sample of A-share listed firms from 2001 to 2021.The results in-dicated that a non-linear relationship between CEO equity incentive and firms'willingness to adopt digital transformation,charac-terized by an inverted U-shaped effect.Specifically,as CEO shareholding increases,the impact of CEO equity incentives on firms'willingness to pursue digital transformation initially increases and then decreases.Management shortsightedness plays a mediating role in this relationship,as CEO equity incentive exerts a positive U-shaped influence on management shortsighted-ness,which in turn leads to the non-linear effect on firms'willingness to pursue digital transformation.In addition,CEO career concerns moderate the relationship between CEO equity incentives and firms'willingness to embrace digital transformation.Spe-cifically,CEO career concerns mitigate the rapid decline in CEO promotional focus and suppress the premature emergence of CEO preventive focus,thereby smoothing the inverted U-shaped effect of CEO equity incentive on firms'willingness to embrace digital transformation.This study has challenged the stereotypical consensus that CEO equity incentive positively affects firms'willingness to pursue digital transformation,and will enrich the cross-research on leadership and digital transformation from the perspective of CEO motivation.Furthermore,it will promote the application and development of the upper-echelon theory in the field of digital transformation by revealing the non-linear impact of CEO equity incentives on firms'willingness to engage in digital transformation and the black box of the mediating mechanism involved.Overall,this study will provide theoretical insights for ef-fectively incentivizing CEOs to drive digital transformation in firms.
digital transformation willingnessCEO equity incentiveCEO career concernmanagement shortsightedness
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