Digital transformation tone signal and the cost of equity: Evidence from Chinese listed companies
Borui Guo and
Xiaoxia Huang
Finance Research Letters, 2024, vol. 59, issue C
Abstract:
We use text analysis to extract the tone of digital transformation disclosure and investigate the relationship between digital transformation tone and equity cost using Chinese companies listed on Shenzhen and Shanghai A-share markets between 2009 and 2020. The results show that a rise in the positivity of digital transformation tone can reduce the cost of equity, which remains unaffected by a battery of robustness tests. Further analysis reveals that information asymmetry and investor attention partially mediate this field's effects. This paper's findings are essential for comprehending the value of information disclosure in enterprise digital transformation.
Keywords: Digital transformation tone; Tone signal; Cost of equity (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612323010929
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323010929
DOI: 10.1016/j.frl.2023.104720
Access Statistics for this article
Finance Research Letters is currently edited by R. Gençay
More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().