Digital Transformation and Its Financial Performance Implications: A Study of Impact Mechanisms

Abstract

Under the wave of digital technology, many enterprises rely on core digital technologies such as big data and artificial intelligence to innovate and promote digital transformation, in order to achieve long-term financial performance improvement. However, in the stage of transformation and introduction, enterprises generally face capital investment pressure and organizational restructuring difficulties, resulting in short-term financial performance damage. This study conducts empirical analysis based on data from Chinese A-share listed companies from 2018 to 2023, verifying the objective existence of the phenomenon of short-term financial performance decline after implementing digital transformation measures. Furthermore, the study focuses on the key regulatory factor of property rights and deeply analyzes its impact mechanism on the relationship between digital transformation and financial performance of enterprises. Based on this, strategic recommendations with situational adaptability are proposed to address the different property rights characteristics of state-owned and non-state-owned enterprises, in order to help both types of enterprises improve their digital adaptation efficiency and achieve sustainable development.