A Study On The Impact Of Digital Transformation On Corporate Innovation

Since the implementation of the innovation-driven development strategy,enhancing innovation capability has become an important task for the future development of enterprises.The Twenty Twentieth Report emphasises that the reinforcement of the status of enterprises as the main body of scientific and technological innovation is an inherent requirement for achieving qualitative development and is the key to improving the overall performance of the national innovation system.In the current age of digital economy,the digital restructuring of enterprises is a strong engine to promote innovation-driven development of microeconomic subjects,and the acceleration of digital transformation-driven innovation development of enterprises is an important element to emphasize the effectiveness of the construction of Digital China.The management of an enterprise’s digital transformation is the result of a strategic decision by the management,which is often limited by the length of time perception and the breadth of the decision-making perspective,and usually focuses heavily on short-term gains in the process of digital reform at the expense of the long-term development of the enterprise.However,the enterprise’s controlling shareholder can influence management’s decision-making behaviour through the board of directors.Equity pledges,as one of the important channels of external financing for controlling shareholders,obtain sufficient cash flow while maintaining control,but at the same time exacerbate the risk of transfer of control and reduce the enterprise’s preference for innovative R&D projects with positive net present value,especially when the pledged funds are invested in nonpledged enterprises,whose The impact of stock pledging behavioural motives on the interrelationship of the digital transformation and the firms’ level of innovation needs to be discussed in depth.On the basis of the above context,A-share quoted enterprises in China from 2013-2021 are chosen as the study sample,and a theoretical analysis together with an empirical analysis is adopted to investigate The impact of digital treatment on the level of corporate innovation based on principal-agency therapy and asymmetric message theory and dynamic capability theory,and,in addition,shareholder commitment to equity control under external equity investment is used as a moderator variable to explore the impact Further,the paper investigates the innovation level of firms under the dual effect of digital transformation and equity commitment.Finally,this paper mainly draws the following conclusions:(1)that digital transformation favors higher levels of investment in corporate innovation;(2)that the equity pledge by controlling shareholders reduces the level of corporate innovation and is inhibitory to the level of R&D innovation;(3)that the equity pledge in external pledged fund investments weakens the positive relationship between both digital transformation and corporate innovation;(4)the promoting effect of digital transformation on investment in corporate innovation and the moderating effect of equity pledging in external pledged fund investment on both is more significant among Eastern and high-tech firms.(5)The beneficial effect of digital transformation on corporate innovation entries can promote the production of innovation outputs,and its facilitating effect is primarily positive on the production of high-quality innovation.Finally,based on the findings of this paper,relevant suggestions are made to business,government and regulators.