Can Digital Transformation Improve the Quality of Corporate Information Disclosure?

Digital transformation which can improve enterprises’ information processing capability and supervision efficiency may also further affect the quality of information disclosure of micro-enterprises. Based on the data of A-share listed companies in Shanghai and Shenzhen from 2010 to 2020, this paper conducts an empirical test on both the impact of digital transformation on the quality of information disclosure, and the mechanism of such impact. The research findings include: First, digital transformation significantly improves the quality of corporate information disclosure. This causal relationship between digital transformation and the quality of corporate information disclosure remains unchanged after the endogeneity was alleviated by DID and variable sensitivity analysis; second, different digital technologies significantly improve the quality of corporate information disclosure; third, digital transformation impacts the quality of information disclosure partly through reducing agency costs and increasing the stickiness of executive compensation; fourth, the study further finds that the market competition of product and internal governance can significantly enhance the positive impact of digital transformation on information disclosure. This paper not only enriches the empirical research on the economic consequences of digital transformation and the influencing factors of information disclosure, but also provides a reference for the quality improvement of corporate information disclosure and the protection of the legitimate rights and interests of small and medium investors in their process of digital transformation