How Analyst Attention Promotes Digital Transformation in Chinese Firms: The Moderating Role of CEOs’ Green Experience

Zhonglian Luo, Jie Li, Yufei Gan (), Chunlan Li and Shiyu Cao
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Zhonglian Luo: School of Economics and Management, Jiangxi Normal University, Nanchang 330022, China
Jie Li: School of Economics and Management, Jiangxi Normal University, Nanchang 330022, China
Yufei Gan: School of Economics and Management, Jiangxi Normal University, Nanchang 330022, China
Chunlan Li: Financial Department, Jiangxi Normal University, Nanchang 330022, China
Shiyu Cao: School of Economics and Management, Jiangxi Normal University, Nanchang 330022, China

Sustainability, 2025, vol. 17, issue 8, 1-21

Abstract: In an era of global digitalization, understanding the drivers of corporate digital transformation is crucial for sustainable economic growth. This study examines the impact of analyst attention on the digital transformation of Chinese firms using a comprehensive dataset of 27,850 firm-year observations from 2010 to 2023. We employ regression analysis—including fixed effects, robustness checks, and instrumental variable approaches—to assess whether increased scrutiny from financial analysts influences the adoption of advanced digital technologies. Our empirical results reveal that heightened analyst attention significantly promotes digital transformation. Furthermore, environmental, social, and governance (ESG) performance partially mediates this relationship, while CEO green experience moderates it by amplifying the positive effect of analyst attention. These findings underscore the critical roles of external monitoring and leadership in driving digital initiatives and provide valuable insights for policymakers and corporate managers seeking to integrate sustainability practices into digital strategies.

Keywords: digital transformation; analyst attention; ESG performance; CEO green experience; CEO duality; CEO fund holdings (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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