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June 13, 2026Corporate Governance An International Review

Digital Transformation and Corporate Violations: Evidence From China

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Authors

TWTieqi WuBDBin Dong

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Overview

Research demonstrates a positive correlation between digital transformation and corporate violations, suggesting important implications for governance.

Key Points

  • This study examines how digital transformation affects corporate violations in the Chinese context, identifying both inhibiting and exposing effects.
  • Conducted robustness tests and a natural experiment to validate findings.
  • Performed mechanism tests to evaluate the dual impact of digital transformation.
  • Analysed heterogeneity based on violation incentives and opportunity for misconduct.
  • Digital transformation positively correlates with corporate violations despite its inhibitory effect on misconduct.
  • Higher violation incentives and stronger rationalization in firms amplify this relationship.
  • Digitalization aids in exposing minor violations, potentially preventing larger corporate scandals.

Cite This Study

Wu et al. (2026) studied this question.

synapsesocial.com/papers/6a2cf62dfaef96ed7f058034https://doi.org/10.1111/corg.70049
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Also Consider

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  1. 1Does digital transformation increase corporate violations?2024 · 7 citations
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  3. 3When corporate culture matters: The case of stakeholder violations2023 · 63 citations