Exploring the digital era: Has digital technology innovation reshaped investment efficiency in Chinese enterprises?

Xiaobing Lai, Lei Quan, Chong Guo and Xing Gao

Research in International Business and Finance, 2025, vol. 75, issue C

Abstract: In the digital era, technological advancements such as artificial intelligence, big data, and cloud computing are revolutionizing corporate investment strategies, yet academic research has struggled to keep pace with these rapid developments. Utilizing data from 2005 to 2021 for Chinese A-share listed companies, this study examines the impact of digital technology innovation on corporate investment efficiency. The findings reveal that firms with higher levels of digital technology innovation tend to have greater investment efficiency. This improvement arises from digital technology innovation's role in several key areas: driving ESG information disclosure, enhancing the quality of capital market information, addressing management issues, reducing reliance on short-term financing, avoiding excessive debt traps, enhancing stock liquidity, and lowering the risk of stock price crashes and debt defaults. Notably, the positive effects are more pronounced in non-state-owned enterprises, high-tech industries, and well-developed financial markets. The article broadens our understanding of the economic effects of digital technology innovation and the factors contributing to corporate investment efficiency growth strategies in a rapidly evolving digital economy.

Keywords: Digital technology innovation; Corporate investment efficiency; Information asymmetry; Digital economy (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:75:y:2025:i:c:s0275531924005221

DOI: 10.1016/j.ribaf.2024.102729

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