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In recent years, the digital economy has experienced robust growth, as digital technology progressively infiltrates every aspect of sustainable economic and societal advancement. Consequently, digital transformation has emerged as an inevitable and essential trend for the continuous advancement of firms. To explore the impact of corporate digital transformation on the accuracy of management earnings forecasts, we conduct an empirical analysis using a sample comprising companies listed on the Shanghai and Shenzhen Stock Exchange from 2010 to 2023. Our findings demonstrate a significant positive impact of corporate digital transformation on the accuracy of management earnings forecasts. Mechanism analysis reveals that the process of digital transformation enhances the accuracy of management earnings forecasts by improving the quality of information disclosure. Moreover, heterogeneity analyses reveal that the positive impact of digital transformation on the accuracy of management earnings forecasts is more pronounced in firms with weaker internal control, robust corporate governance practices, higher agency costs, executives without technical backgrounds, moderate levels of competition, and those that are non-state-owned enterprises. These findings not only provide fresh evidence of the enduring effects of digital transformation but also yield insights into the symbiotic relationship between the capital market and the national economy. Additionally, they present a novel perspective on the regulation of predictive corporate information disclosure.
Zeng et al. (Thu,) studied this question.