How does digital transformation affect firm technical efficiency? Evidence from China

Chaolin Zhang and Yongqi Deng

Finance Research Letters, 2024, vol. 69, issue PA

Abstract: This paper explores the effect of digital transformation on firm technical efficiency. The results show that digital transformation significantly promotes firm technical efficiency by enhancing firm technological progress, improving firm capital allocation efficiency, and optimizing firm human capital structure. In addition, the efficiency improvement effect of firm digital transformation is particularly pronounced in regions with advanced levels of digital economy or digital finance development. Consequently, this study extends the research on the economic effects of firm digital transformation and provides policy insights for governmental promotion of firm digital transformation initiatives.

Keywords: Digital transformation; Firm technological efficiency; Firm technological progress; Capital allocation efficiency; Human capital structure (search for similar items in EconPapers)
JEL-codes: D21 D24 G34 L21 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:69:y:2024:i:pa:s1544612324010997

DOI: 10.1016/j.frl.2024.106069

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