How does digital transformation affect corporate total factor productivity?

Yingya Yang, Yifei Jin and Qinyuan Xue

Finance Research Letters, 2024, vol. 67, issue PB

Abstract: This paper investigates the impact of digital transformation on corporate total factor productivity (TFP). Using data from publicly listed Chinese corporations, empirical analysis shows a significant positive effect on corporate TFP. Various robustness and endogeneity tests consistently support this result. Furthermore, mechanism analysis reveals that digital transformation boosts corporate TFP by enhancing innovation capability and cost control. Heterogeneity analysis demonstrates that corporate size and the industry's technological environment influence the extent of this effect; in large corporations and non-high-tech industries, the positive impact on corporate TFP is more pronounced.

Keywords: Digital transformation; Total factor productivity; Innovation capability; Cost control (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/S1544612324008808
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:67:y:2024:i:pb:s1544612324008808

DOI: 10.1016/j.frl.2024.105850

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 ().