Does the digital transformation of enterprises affect stock price crash risk?

Keping, Wu; Fu, Yumei; Kong, Dongmin

doi:10.1016/j.frl.2022.102888

Cited by 227 publications

(95 citation statements)

References 16 publications

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“…To mitigate the effect of potential endogeneity on the imputed results, we used the instrumental variable (IV) approach (Harymawan et al, 2022). We use industry-year level digital transformation average as an instrumental variable (Wu et al, 2022), and the authors cited argue that firms' digital transformation decisions are influenced by peer effects. Table 5 shows the results of the endogeneity test and the regression results.…”

Section: Endogeneity Issuesmentioning

confidence: 99%

Digital transformation and corporate environmental performance: The moderating role of board characteristics

Chen

Hao

2022

Corp Soc Responsibility Env

138

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Digital transformation, board characteristics, and environmental performance are increasingly important in the field of corporate sustainability. However, despite the growing literature on digital transformation, there is a paucity of literature that considers board characteristics. This paper aims to fill this gap by exploring the relationship between digital transformation and environmental performance from the perspective of board characteristics. Chinese listed companies from 2010 to 2019 were taken as the original data, the moderating effect of the board characteristics was tested by using the moderating effect model. We find that digital transformation can significantly improve corporate environmental performance. A low willingness to digital transformation was showed in the board of directors with age diversity, nationality diversity, shareholding concentration, and political connections. In contrast, digital transformation strategies were preferred in the boards with more female directors and higher educational backgrounds. Our study is of significant value for companies undergoing digital transformation.

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Section: Endogeneity Issuesmentioning

confidence: 99%

Digital transformation and corporate environmental performance: The moderating role of board characteristics

Chen

Hao

2022

Corp Soc Responsibility Env

138

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“…Second, this study advances the investigation on the impact of CEO's psychological feature about hometown identity on firms' adoptions of blockchain technology from the perspective of the firms' adoptions of blockchain technology. This study expands the understanding of the factors affecting the firms' adoptions of blockchain technology and breaks through the previous studies based on the single perspective of the corporate characteristics (Tian et al, 2022;Wu et al, 2022).…”

Section: Introductionmentioning

confidence: 65%

CEOs' psychological trait and firms' adoption of blockchain technology: The role of hometown identity

et al. 2022

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The impact of CEOs' psychological traits on firms' decision-making has been explored by many psychological researchers. What's more, the CEO hometown identity, as one of the most fundamental psychological traits, has drawn increasing attention from the psychological literature. Firms' adoption of blockchain technology plays an innovative and efficient role in firms' strategic transformation. Thus, it is necessary to investigate the relationship between CEOs' psychological traits and firms' adoptions of blockchain technology from the perspective of hometown identity. To examine the impact of the CEO hometown identity on firms' adoption of blockchain technology, this paper manually collects information about the CEO hometown identity and constructs the index of firms' adoption of blockchain technology based on the textual analysis of firms' annual reports. Based on the theory about the psychology of identity, this paper constructs the theoretical hypothesis about the relationship between CEO hometown identity and firms' adoption of blockchain technology. Then, this paper uses a two-way fixed effect regression model to estimate the impact of the CEO hometown identity on firms' adoption of blockchain technology based on the panel data of Chinese A-share non-financial listed firms during 2008–2019. The research results show that: (1) the CEO hometown identity has a positive effect on firms' adoption of blockchain technology. (2) For firms with severe financing constraints and State-owned enterprises (SOEs), the positive effect of the CEO hometown identity on firms' adoption of blockchain technology is more prominent. (3) Our benchmark results still hold after a series of robustness checks, including altering the measurement of the CEO hometown identity, altering the sample, adding CEO-specific control variables, and altering the logit regression model. Based on the above-mentioned findings, this paper not only sheds new light on the power of CEOs' psychological trait but also deepens the understanding about theories of the psychology of identity.

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“…The quantification of blaming games relies on syntactic analysis, which is commonly used in impression management research. Previous research from Kindermann et al ( 2021 ), Wu et al ( 2021 ), and Wu et al ( 2022 ) calculates the frequency of occurrence of the corresponding words in the annual reports published by listed companies as proxy indicators. This method is derived from accounting literature known as “tone at the top.” It is an unobtrusive method featuring textual analysis.…”

Section: Methodsmentioning

confidence: 99%

“…This method is derived from accounting literature known as “tone at the top.” It is an unobtrusive method featuring textual analysis. Several research papers also adopt this method to calculate the CEO narcissism (Kontesa et al 2021 ), management sentiments (Chen et al 2021 ), director optimism (Huang et al 2018 ), climate change campaign (Antonini et al 2021 ), and strategic orientation (Wu et al 2022 ). Therefore, we adopt this unobtrusive method by calculating the occurrence of COVID-19 words in the annual reports.…”

Section: Methodsmentioning

confidence: 99%

The blame game: COVID-19 crisis and financial performance

Setiawan

Kontesa

2022

SN Bus Econ

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This research investigates the manager’s impression management during the COVID-19 pandemic by gauging the agency theory framework. We examine how managers blame COVID-19 when the firms experience declining performance to retain their reputation. Overall, our results indicate that those firms with declining performance will blame COVID-19 compared to those with expected performance. It also indicates that the odds of COVID-19 appearing in the financial report will be higher in the declining performance firms. Our analysis confirms the impression management theory and agency theory by suggesting that, under declining performance, managers blame COVID-19 as the justifications to alter the attention from their incapability to the black swan event. Supplementary Information The online version contains supplementary material available at 10.1007/s43546-022-00352-w.

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Does the digital transformation of enterprises affect stock price crash risk?

Cited by 227 publications

References 16 publications

Digital transformation and corporate environmental performance: The moderating role of board characteristics

Digital transformation and corporate environmental performance: The moderating role of board characteristics

CEOs' psychological trait and firms' adoption of blockchain technology: The role of hometown identity

The blame game: COVID-19 crisis and financial performance

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