The Effect of Corporate Digitalization on Investment Efficiency: Analysis of Theory and Model Design
DOI:
https://doi.org/10.54097/hbem.v19i.11809Keywords:
Investment efficiency; enterprise digitalization; digital transformation.Abstract
This study examines a large amount of literature to sort out the relevant studies on enterprise investment efficiency, enterprise digitization and the effect of industry digitization on enterprise investment efficiency. The paper provides a theory analysis of the effect of enterprise digitization on investment efficiency as a whole. Theoretical level proves that enterprise digitalization can significantly improve the overall enterprise investment efficiency. While investment efficiency is classified into overinvestment and underinvestment, enterprise digitization has different effects on them. Although enterprise digitization can significantly inhibit over-investment and alleviate under-investment of enterprises, it exerts a stronger inhibitory effect on over-investment. Subsequently, the mechanism of enterprise digitization's impact on investment efficiency is further analyzed theoretically, and the research hypothesis is proposed. Then the sample selection, index selection and model building are introduced. Finally, the next step is proposed, and empirical analysis is carried out based on the model proposed in the research design in the hope of proving the impact of enterprise digitalization on the efficiency of investment.
Downloads
References
Li Li, Yang S.L, Chen N. Research on the impact of digital transformation on enterprise investment efficiency. Soft Science, 2023, 1(11): 1-9.
Vogt S.C. The role of internal financial sources in firm financing and investment decisions. Review of Financial Economics, 1994, 4(1): 1-24.
Richardson S. Over-investment of free cash flow. Review of Accounting Studies, 2006, 11: 159-189.
Biddle G.C, Hilary G, Verdi R.S. How does financial reporting quality relate to investment efficiency? Journal of Accounting and Economics, 2009, 48(2-3): 112-131.
Rajagopalan N, Spreitzer G.M. Toward a theory of strategic change: A multi-lens perspective and integrative framework. Academy of Management Review, 1997, 22(1): 48-79.
Warner K, Wäger M. Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 2019, 52(3): 326-349.
Chu C.B, Wang Y.J. Enterprise digitization, financing constraints and investment efficiency. Journal of Jilin Technology and Business University, 2022.
Hu R. Research on the impact of enterprise digitalization on investment efficiency. Accounting Communication, 2022(22): 92-96.
Zhao C.Y. Digital development and service transformation -Empirical evidence from listed manufacturing companies. Nankai Management Review, 2021, 24(2): 149-163.
Wu F, Hu H.Z, Lin H.Y, et al. Enterprise digital transformation and capital market performance -Empirical evidence from stock liquidity. Management World, 2021, 37(7):130-144.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
