Can digitalization empowerment improve the efficiency of corporate capital allocation? —Evidence from China

Li, Cong; Liu, Jiaxuan; Liu, Yuwei; Wang, Xiaoyu

doi:10.1016/j.eap.2023.11.014

Cited by 7 publications

(2 citation statements)

References 48 publications

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“…Because of the increased information environment, auditors' monitoring role is diminished [26]. Incorporating big data technology facilitates the tracking of various business activities, enhancing internal information transparency, which mitigates information asymmetry between stakeholders and the enterprise, escalating external monitoring pressure on the company [54].…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…We conjecture that the influence of big data on corporate ESG performance varies based on the initial digitalization level of firms. Following the literature [39,54], we employ a textual analysis approach to extract keyword frequency data related to firm digitalization from annual reports. Specifically, we conduct a statistical analysis of 99 keywords related to digital transformation.…”

Section: Enterprise Digital Transformationmentioning

confidence: 99%

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Big Data Infrastructure and Corporate ESG Performance: Evidence from Listed Chinese Manufacturing Companies

Wang,

Zhang

2024

Sustainability

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This paper investigates the impact of big data on firms’ environmental, social, and governance (ESG) performance. We provide quasi-experimental estimates using a unique quasi-natural experiment: the national policy of introducing Big Data Pilot Zones (BDPZs) in Chinese cities. Our analysis exploits data on firm-level ESG performance with a standard difference-in-differences empirical strategy. We find that big data has a significant positive impact on corporate ESG performance. The effect is more prominent for companies in non-heavily polluting industries, with a lower level of digital transformation, and those not rigorously audited. Analysis of the mechanisms shows that big data enhances the transparency of corporate information. Facing external supervisory pressure, companies tend to enhance their ESG performance to mitigate reputational risks.

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Section: Hypothesis Developmentmentioning

confidence: 99%

Section: Enterprise Digital Transformationmentioning

confidence: 99%