Impact of interlocking directors with digital experience on corporate digitalization: Evidence from China

Wentao Li, Xue Li, Lanying Peng and Zhenye Yao

Finance Research Letters, 2024, vol. 62, issue PA

Abstract: We examine the impact of interlocking directors with digital experience on corporate digitalization. Using a sample of Chinese listed firms from 2007 to 2021, we find that interlocking directors with digitalization experience have significant positive effect on the focal firm’s digitalization. Mechanism analyses further indicate that these interlocking directors play a pivotal role in enabling firms to reduce information asymmetry and alleviate financial constraints by weakening managerial myopia in the focal firm. Cross-sectional analyses highlight that the favorable effect of such interlocking directors mainly exists in non-SOEs and firms with younger CEOs.

Keywords: Interlocking Directors; Digital Experience; Corporate Digitalization (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612324001727
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:62:y:2024:i:pa:s1544612324001727

DOI: 10.1016/j.frl.2024.105142

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 ().