A Research On The Mechanism Of Digital Transformation Affecting Firm Value

With the rapid development of information technology,digitalization is increasingly used in China’s economy and society.However,existing studies on digital transformation have mainly focused on macroeconomic levels,such as national and regional,and there is little literature that systematically explores from a micro perspective the There is little literature that systematically explores the intrinsic relationship between digital transformation and firm value from a micro perspective.In fact,digital transformation can significantly reduce information asymmetries between external investors and companies,and add value to business by breaking down the constraints of time and space through its ability to "connect" and integrate information.Therefore,it is necessary to link digital transformation to business value in the following way: Does digital transformation contribute to business value? If digital transformation contributes to business value,what are the impact mechanisms? What factors are affected as a result of the relationship between digital transformation and business value? The answers to these questions not only help to enrich research in the area of digital transformation and business value,but also provide practical lessons for assessing the economic impact of digital transformation strategies to enhance firm value.Based on the data of a-share listed companies,this thesis discusses the impact of digital transformation on enterprise value and its mechanism from the perspective of data empowerment and signal transmission.First of all,the Digital Transformation Index of Guotai’an database is matched with the data of listed companies from 2007 to 2020,and then the impact of digital transformation on enterprise value is analyzed.On this basis,the impact of digital transformation on the value of enterprises in different government subsidies,different external financing scale whether there is a difference.Finally,through the B-K model and the causal intermediary effect model,the thesis examines the internal intermediary mechanism of the impact of digital transformation on enterprise value.The study finds that digital transformation is beneficial to firm value,and that the impact of digital transformation is more effective in contributing to value improvement for head firms.Specifically,the impact of digital transformation is three times greater for firms in the90% quartile than for firms in the 10% quartile,and both endogeneity and robustness support this result.Heterogeneity analysis shows that digital transformation has a more pronounced impact on the value of firms that receive more government subsidies,due to the fact that government subsidies help alleviate the financial pressure in the value creation process of digital transformation;for firms of different sizes,digital transformation has a more significant effect on the value enhancement of large-scale firms and a smaller effect on the value enhancement of small and medium-sized firms;for firms of different external financing sizes,digital transformation For enterprises with different external financing scale,digital transformation has a more obvious effect on enterprises with large external financing scale.Further,it is found that information transparency and innovation capability are important channel mechanisms through which digital transformation affects enterprise value.It enriches the research on the relationship between digital transformation and capital market,and provides theoretical insights to promote the practice of digital transformation of enterprises.