Digital Transformation And Level Of Corporate Governance

Since the country clearly put forward the big data strategy in 2015,the policies to promote the development of digital economy and digital industry transformation have been deepened and put into practice.At the "2022 Digital Industry Transformation Development Summit",Zhao Ce,deputy director of the Department of Information and Communication Development of the Ministry of Industry and Information Technology,pointed out that digital transformation is no longer a"Therefore,in the context of the rapid development of the digital economy,digital transformation has slowly become a hot topic of research in recent years as a necessary path for the long-term development of enterprises.Nowadays,due to the intensified competitive pressure of companies,more people begin to pay attention to the management quality and governance environment of companies,and the effective management of companies can enhance the competitive advantage of companies and protect the long-term development of companies,so it is of great practical significance to explore the impact on the level of corporate governance from the perspective of digital transformation.The research in this paper consists of two main aspects in terms of content.On the one hand,this paper explores the impact of digital transformation on corporate governance.On the other hand,the paper further investigates whether the quality of internal control and the degree of external monitoring have a mediating effect on the level of corporate governance through digital transformation through regression models.This paper draws on the corporate governance index in China developed by the Corporate Management Evaluation Group of Nankai University,and fits the shareholders’ meeting and listed company independence evaluation index,the board of directors’ governance evaluation index,the supervisory board governance evaluation index,the managerial governance evaluation index,the information disclosure index,and the stakeholder governance index as a measure of corporate governance level.Digital transformation is measured by using the digital transformation degree index of listed companies in China Economic and Financial Research Database(CSMAR)as a metric.The impact of digital transformation on the level of corporate governance is empirically explored using a sample of A-share listed companies from 2011-2021.The analysis results of the empirical evidence show that digital transformation has a significant contribution to the level of corporate governance.Digital transformation helps to improve the level of corporate governance and enhance the competitive advantage of companies.In addition,the regression results of digital transformation on the quality of internal control and the degree of external supervision also indicate that the improvement of the degree of digital transformation of companies can lead to the improvement of the quality of internal control and the strengthening of the degree of external supervision,and the improvement of the quality of internal control and the degree of external supervision of companies can in turn promote the improvement of the level of corporate governance,thus it can be confirmed that the quality of internal control and the degree of external supervision of companies on the It can be confirmed that there is a mediating effect of the association between digital transformation and the level of corporate governance.The research results of this paper can not only help to enrich the research on the impact of digital transformation on corporate governance,but also provide new ideas for companies to develop digital transformation strategies and help corporate managers to better carry out corporate governance,which has certain theoretical value and practical significance.