Paper Number
1411
Paper Type
Complete Research Paper
Abstract
Digital transformation holds the potential to significantly pave the way for firms' high-quality development. Nevertheless, this intricate process is fraught with considerable risks. Consequently, it is imperative to examine the capital market's response to firms' digital transformation, as this area remains largely unexplored by scholars. Also, it has not been revealed how investor attention and media coverage influence the signaling role of digital transformation. Based on the signaling theory, this paper aims to investigate the relationship between digital transformation disclosure and value estimation and the contingencies from the attentional contexts such as investor attention and media coverage. Through the analysis of China's manufacturing industry, we find that the digital transformation disclosure of manufacturing firm is conducive to the improvement of its value estimation. Investor attention and media coverage can jointly promote the value estimation enhancement effect of digital transformation disclosure.
Recommended Citation
Wang, Xueying; Yu, Angela; Hao, Jinxing; and Liu, Ben, "Linking Digital Transformation Disclosure to Firms' Valuation on Capital Market: Augmentation of External Attention" (2024). ECIS 2024 Proceedings. 14.
https://aisel.aisnet.org/ecis2024/track12_digtrans/track12_digtrans/14
Linking Digital Transformation Disclosure to Firms' Valuation on Capital Market: Augmentation of External Attention
Digital transformation holds the potential to significantly pave the way for firms' high-quality development. Nevertheless, this intricate process is fraught with considerable risks. Consequently, it is imperative to examine the capital market's response to firms' digital transformation, as this area remains largely unexplored by scholars. Also, it has not been revealed how investor attention and media coverage influence the signaling role of digital transformation. Based on the signaling theory, this paper aims to investigate the relationship between digital transformation disclosure and value estimation and the contingencies from the attentional contexts such as investor attention and media coverage. Through the analysis of China's manufacturing industry, we find that the digital transformation disclosure of manufacturing firm is conducive to the improvement of its value estimation. Investor attention and media coverage can jointly promote the value estimation enhancement effect of digital transformation disclosure.
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