Digital economy policy and enterprise digital transformation: Evidence from innovation and structural effect

Deheng Xiao, Can Zhang and Yongjian Huang

Managerial and Decision Economics, 2024, vol. 45, issue 4, 2348-2359

Abstract: Using a sample from 2010 to 2021 of listed companies in Shanghai and Shenzhen A‐shares, we explore the effect of digital economy policy (DEP) at city level on enterprise digital transformation (EDT). We find that DEP can promote EDT. And the outcome remains valid following a sequence of rigorous tests to assess its robustness and account for endogeneity. Further analysis indicates that DEP plays roles by internal innovation effect and external structural effect. Moreover, this positive effect will be stronger in enterprises in manufacturing and high‐tech industries and those with better staffing structure, higher enterprise productivity and value. Also, we find that the effect of DEP on enterprises varies in regions with different government subsidy, digital infrastructure level, and location.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:45:y:2024:i:4:p:2348-2359

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