Financial Shared Service, Digital Transformation and Corporate Value Creation

Abstract

AbstractThe trend of Chinese enterprises has defied the hard-hit international investment and trade activities of recent years. The scale and globalization of local enterprises continue to develop, and the enterprise management efficiency has become increasingly prominent. This paper delves into the strategic importance of FSSC in augmenting corporate value, and examines the link between digital transformation and the formation of FSSC. The introduction of FSSC and its accompanying digital technology marks a new juncture for corporate reform. Based on RBV and DCV, this paper studies the strategic significance of FSSC to enhance corporate value, and deconstructs the relationship between digital transformation and the development process of financial shared service centers. Based on the time-varying DID, 335 listed companies were selected for a quasi-natural experiment. The results showed that: (1) financial shared service centers can significantly promote the improvement of corporate value. (2) Digital transformation can promote the establishment and development of financial sharing service centers, thus promoting the improvement of corporate value. (3) The effects of FSSC and digital transformation are characterized by heterogeneity. The worth of financial shared service centers for non-state-owned and manufacturing companies is substantial. Digital transformation has a noteworthy positive moderating effect on them but has no considerable moderating effect on state-owned and non-manufacturing companies. The government ought to bolster policy direction, keep up the digital transformation of businesses, and aid them in achieving rapid financial transformation; senior executives should remain cognizant of their strategic position and strive to execute a satisfactory job of both internal and external coordination, as the research findings suggest.