How Digital Transformation Impacts Corporate Shared Wealth

Abstract

This paper analyses the data of China's A-share listed companies from 2011-2021 to empirically explore the impact and mechanism of corporate digital transformation on corporate shared wealth. It is found that digital transformation has a significant positive impact on the level of corporate shared wealth, and this conclusion still holds after robustness tests using multiple methods. Mechanism analyses show that firms' innovation capabilities play a partly mediating role in the process of digital transformation in promoting firms' shared prosperity. Heterogeneity analysis finds that the positive effect of digital transformation on corporate shared wealth is more significant among listed companies in low-pollution industries and those whose domiciles are located in the eastern region. The research in this paper is instructive and informative for promoting the process of common wealth in China.