Gimmick or revolution: can corporate digital transformation improve accounting information quality?

Abstract

PurposeThis study explores the impact mechanism of corporate digital transformation (CDT) on the quality of accounting information.Design/methodology/approachSamples of A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2007 to 2020 are used as a research sample. The empirical analysis is based on the ordinary least squares regression model, and mediation and moderation effect models were used in further analysis.FindingsThis study finds that CDT enhances accounting information quality by alleviating the agency problem. This positive effect is more significant among firms that exhibit less media coverage, have low industry competition and are not subject to cyber-attack.Originality/valueThis study extends the economic consequences of CDT and enriches the literature on the factors that affect accounting information quality. Further, this study's findings guide the government to actively promote CDT, facilitate the digital upgrading of industries and improve accounting information quality and efficiency in capital markets.