Impact of audit quality and digital transformation on innovation efficiency: Role of financial risk-taking

IF 5.5 2区经济学 Q1 BUSINESS, FINANCE

Global Finance Journal Pub Date : 2024-08-09 DOI:10.1016/j.gfj.2024.101026

Manal Yunis , Nawazish Mirza , Adnan Safi , Muhammad Umar

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引用次数: 0

Abstract

Advances in digital technologies, platforms, and infrastructures drive digital transformation, which significantly influences firm strategies, processes, and innovation efforts. This study investigates the impact of digital transformation and audit quality on the innovation efficiency of Chinese firms, focusing on firms' risk-taking behavior. Analyzing data from 2007 to 2021, we find that digital transformation substantially enhances innovation efficiency, especially in smaller firms and those experiencing slow growth during economic downturns. Furthermore, our research underscores the importance of audit quality in promoting innovation efficiency, going beyond traditional financial reporting. However, the study also reveals that although digital transformation and high audit quality are essential for boosting efficiency, excessive risk-taking negatively affects this relationship. The impact of digital transformation and audit quality on innovation efficiency is further moderated by several factors such as firm size, business cycle, and growth. These findings hold significant implications for investors and policymakers, emphasizing the importance of integrated governance and digital strategies in optimizing innovation outcomes.

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审计质量和数字化转型对创新效率的影响：金融风险承担的作用

数字技术、平台和基础设施的进步推动了企业的数字化转型，而数字化转型又极大地影响了企业的战略、流程和创新努力。本研究以企业的风险承担行为为研究对象，探讨了数字化转型和审计质量对中国企业创新效率的影响。通过分析 2007 年至 2021 年的数据，我们发现数字化转型大大提高了创新效率，尤其是在规模较小的企业和经济低迷时期增长缓慢的企业中。此外，我们的研究还强调了审计质量在促进创新效率方面的重要性，它超越了传统的财务报告。不过，研究也显示，虽然数字化转型和高审计质量对提高效率至关重要，但过度冒险会对这种关系产生负面影响。数字化转型和审计质量对创新效率的影响还受到企业规模、商业周期和增长等因素的制约。这些发现对投资者和政策制定者具有重要意义，强调了综合治理和数字化战略在优化创新成果方面的重要性。

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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来源期刊

Global Finance Journal BUSINESS, FINANCE-

CiteScore

7.30

自引率

13.50%

发文量

106

审稿时长

53 days

期刊介绍： Global Finance Journal provides a forum for the exchange of ideas and techniques among academicians and practitioners and, thereby, advances applied research in global financial management. Global Finance Journal publishes original, creative, scholarly research that integrates theory and practice and addresses a readership in both business and academia. Articles reflecting pragmatic research are sought in areas such as financial management, investment, banking and financial services, accounting, and taxation. Global Finance Journal welcomes contributions from scholars in both the business and academic community and encourages collaborative research from this broad base worldwide.