Exploring the Digital Era: Has Digital Technology Innovation Reshaped Investment Efficiency in Chinese Enterprises?

Xiaobing Lai, Lei Quan, Chong Guo and Xing Gao
Additional contact information
Xiaobing Lai: School of Economics & Management, Southeast University, Jiulong Lake Campus, Southeast University, Nanjing City, Jiangsu Province, P. R. China 211189; Economic Growth Centre, School of Social Sciences, Nanyang Technological University, 50 Nanyang Avenue, Singapore 639798
Lei Quan: School of Economics & Management, Southeast University, Jiulong Lake Campus, Southeast University, Nanjing City, Jiangsu Province, P. R. China 211189; Financial Technology Engineering and Technology Development Center, Guangdong University of Finance, Guangzhou City, Guangdong Province, P. R. China 510521
Chong Guo: School of Economics & Management, Southeast University, Jiulong Lake Campus, Southeast University, Nanjing City, Jiangsu Province, P. R. China 211189
Xing Gao: School of Finance & Economics, Hunan University of Finance and Economics, Changsha City, Hunan Province, P. R. China 410205

No 2302, Economic Growth Centre Working Paper Series from Nanyang Technological University, School of Social Sciences, Economic Growth Centre

Abstract: In the digital era, advancements in technologies 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 stems from the role of digital innovation in driving digital transformation, improving information quality, addressing management issues, reducing reliance on short-term financing, and lowering financial risks. 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)
JEL-codes: G11 G31 O3 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2023-02
References: Add references at CitEc
Citations:

Downloads: (external link)
https://web.hss.ntu.edu.sg/egc/wp/2023/2023-02.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nan:wpaper:2302

Access Statistics for this paper

More papers in Economic Growth Centre Working Paper Series from Nanyang Technological University, School of Social Sciences, Economic Growth Centre Contact information at EDIRC.
Bibliographic data for series maintained by Magdalene Lim ().