Is financial digitalization an effective strategy to prevent stock price crash?

Lingbing Tang and Ming Li

Finance Research Letters, 2025, vol. 72, issue C

Abstract: This study adopted enterprise financial shared service centers as a measure of financial digital upgrading. We investigated the impact of financial digital transformation on stock price collapse risk using data from China's A-share listed companies from 2008 to 2022. Digital transformation in corporate finance significantly reduced the risk by improving accounting information and internal management quality. The effect was not significant in state-owned or large-scale enterprises but was significant for non-state-owned and small-scale enterprises.

Keywords: Financial digital transformation; Stock prices collapse; Information quality; Internal control (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:72:y:2025:i:c:s1544612324015526

DOI: 10.1016/j.frl.2024.106523

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