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Gimmick or revolution: can corporate digital transformation improve accounting information quality?

Wanyi Chen (Shanghai University, Shanghai, China)
Weiyu Cai (Shanghai University, Shanghai, China)
Yingfan Hu (Shanghai University, Shanghai, China)
Yuke Zhang (Shanghai University, Shanghai, China)
Qinyuan Yu (Shanghai University, Shanghai, China)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 12 December 2022

112

Abstract

Purpose

This study explores the impact mechanism of corporate digital transformation (CDT) on the quality of accounting information.

Design/methodology/approach

Samples of A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2007 to 2020 are used as a research sample. The empirical analysis is based on the ordinary least squares regression model, and mediation and moderation effect models were used in further analysis.

Findings

This study finds that CDT enhances accounting information quality by alleviating the agency problem. This positive effect is more significant among firms that exhibit less media coverage, have low industry competition and are not subject to cyber-attack.

Originality/value

This study extends the economic consequences of CDT and enriches the literature on the factors that affect accounting information quality. Further, this study's findings guide the government to actively promote CDT, facilitate the digital upgrading of industries and improve accounting information quality and efficiency in capital markets.

Keywords

Acknowledgements

Funding: Wanyi Chen acknowledges financial support from the Science and Technology Commission of Shanghai Municipality (Project No. 22692105300); National Natural Science Foundation of China (Project No. 72102139).

Citation

Chen, W., Cai, W., Hu, Y., Zhang, Y. and Yu, Q. (2022), "Gimmick or revolution: can corporate digital transformation improve accounting information quality?", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-04-2022-0572

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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