The Impact of Corporate Digital Transformation on Market Value: An Analysis Based on the Tobin’s Q Ratio of A-Share Listed Companies

Abstract

In this study, A-share companies listed on China stock exchange from 2011 to 2024 are taken as samples, and principal-agent theory and theory of information asymmetry are used. Then, we will make an empirical investigation on how digital conversion affects enterprise value and how this influence works. From the survey results, it is found that digital transformation can greatly improve the enterprise value. Heterogeneity analysis shows that there is no obvious difference between manufacturing and non-manufacturing industries in the good influence of digital transfer on improving enterprise value. Through mechanism verification, we find that digital conversion can improve enterprise value by reducing agency cost, easing information system and strengthening management supervision. This study will provide empirical evidence for digital initiatives and policy making of enterprises.