The impact of consumer complaints on corporate digital transformation

Yingchao Lu, Hailing Chang and Yadan Zhou

International Review of Economics & Finance, 2025, vol. 101, issue C

Abstract: This paper examines the impact of consumer complaints on corporate digital transformation and its underlying mechanisms. Using quarterly data from China's Shanghai and Shenzhen A-share listed companies from 2018 to 2023, the empirical results show that an increase in consumer complaints significantly hinders corporate digital transformation. Mechanism analysis reveals that consumer complaints raise legal risks and non-productive costs for firms, leading them to allocate more resources toward short-term crisis management rather than long-term digital development. Heterogeneity analysis indicates that this inhibitory effect is more pronounced in firms with weaker cybersecurity governance, firms whose executives lack a digital background, and firms with higher media attention. This study fills a gap in the literature on the impact of consumer complaints on corporate digital transformation and provides theoretical support for relevant policy formulation.

Keywords: Consumer complaints; Digital transformation; Corporate governance (search for similar items in EconPapers)
JEL-codes: D12 L20 O32 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:101:y:2025:i:c:s1059056025003661

DOI: 10.1016/j.iref.2025.104203

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