"Digitwashing": The Gap between Words and Deeds in Digital Transformation and Stock Price Crash Risk

arXiv - QuantFin - Statistical Finance Pub Date : 2024-03-03 DOI:arxiv-2403.01360

Shutter Zor

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Abstract

The contrast between companies' "fleshy" promises and the "skeletal" performance in digital transformation may lead to a higher risk of stock price crash. This paper selects a sample of Shanghai and Shenzhen A-share listed companies from 2010 to 2021, empirically analyses the specific impact of the gap between words and deeds in digital transformation (GDT) on the stock price crash risk, and explores the possible causes of GDT. We found that GDT significantly increases the stock price crash risk, and this finding is still valid after a series of robustness tests. In a further study, a deeper examination of the causes of GDT reveals that firms' perceptions of economic policy uncertainty significantly increase GDT, and the effect is more pronounced in the sample of loss-making firms. At the same time, the results of the heterogeneity test suggest that investors are more tolerant of state-owned enterprises when they are in the GDT situation. Taken together, we provide a concrete bridge between the two measures of digital transformation - digital text frequency and digital technology share - and offer new insights to enhance capital market stability.

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"数字清洗"：数字化转型中的言行差距与股价暴跌风险

公司在数字化转型中 "丰满 "的承诺与 "骨感 "的表现之间的反差可能会导致股价暴跌的风险。本文选取2010-2021年沪深A股上市公司为样本，实证分析了数字化转型中的言行不一（GDT）对股价崩盘风险的具体影响，并探讨了GDT可能的成因。我们发现，GDT 显著增加了股价暴跌风险，并且这一结论在经过一系列稳健性检验后仍然有效。在进一步的研究中，我们对 GDT 的成因进行了深入探讨，发现企业对经济政策不确定性的感知会显著增加 GDT，而且这种效应在亏损企业样本中更为明显。同时，异质性检验的结果表明，当国有企业处于 GDT 状态时，投资者对其更为宽容。综上所述，我们在数字转型的两个衡量指标--数字文本频率和数字技术份额之间架起了一座具体的桥梁，为增强资本市场的稳定性提供了新的见解。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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arXiv - QuantFin - Statistical Finance

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