Digital transformation and corporate diversification

IF 5.3 2区经济学 Q1 BUSINESS, FINANCE

Pacific-Basin Finance Journal Pub Date : 2025-08-08 DOI:10.1016/j.pacfin.2025.102895

Jin Roc Lv , Chenghui Ye , Chen Yang

{"title":"Digital transformation and corporate diversification","authors":"Jin Roc Lv , Chenghui Ye , Chen Yang","doi":"10.1016/j.pacfin.2025.102895","DOIUrl":null,"url":null,"abstract":"<div><div>We find that a one-standard-deviation increase in digital transformation is associated with a 0.0579-standard-deviation increase in corporate diversification. This finding is robust to alternative measures of digital transformation and corporate diversification, sample constructions, and the control for potential endogeneity issues. In additional analyses, we first show that the effect of digital transformation on corporate diversification is more pronounced in regions with less developed external markets, in industries with a lower level of competition, and in firms with greater R&D intensity; second, digital transformation affects corporate diversification through the reductions in cost stickiness and advertising expenses; third, digital transformation has a stronger effect on related than unrelated diversification; fourth, digital transformation alters the effect of diversification on firm value. Taken together, these results are largely consistent with the resource view in the literature on corporate diversification, which states that firms diversify when excess resources are available.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"93 ","pages":"Article 102895"},"PeriodicalIF":5.3000,"publicationDate":"2025-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Pacific-Basin Finance Journal","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0927538X2500232X","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}

引用次数: 0

Abstract

We find that a one-standard-deviation increase in digital transformation is associated with a 0.0579-standard-deviation increase in corporate diversification. This finding is robust to alternative measures of digital transformation and corporate diversification, sample constructions, and the control for potential endogeneity issues. In additional analyses, we first show that the effect of digital transformation on corporate diversification is more pronounced in regions with less developed external markets, in industries with a lower level of competition, and in firms with greater R&D intensity; second, digital transformation affects corporate diversification through the reductions in cost stickiness and advertising expenses; third, digital transformation has a stronger effect on related than unrelated diversification; fourth, digital transformation alters the effect of diversification on firm value. Taken together, these results are largely consistent with the resource view in the literature on corporate diversification, which states that firms diversify when excess resources are available.

查看原文本刊更多论文

数字化转型和企业多元化

我们发现，数字化转型每增加一个标准差，企业多元化就会增加0.0579个标准差。这一发现对于数字化转型和企业多元化、样本构建以及潜在内生性问题控制的替代措施是稳健的。在进一步的分析中，我们首先表明，在外部市场不发达的地区、竞争水平较低的行业和研发强度较高的企业中，数字化转型对企业多元化的影响更为明显；第二，数字化转型通过降低成本粘性和广告费用影响企业多元化；第三，数字化转型对关联多元化的影响强于非相关多元化；第四，数字化转型改变了多元化对企业价值的影响。综上所述，这些结果在很大程度上与有关公司多元化的文献中的资源观点一致，该观点认为，当有过剩资源可用时，公司会进行多元化。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Pacific-Basin Finance Journal BUSINESS, FINANCE-

CiteScore

6.80

自引率

6.50%

发文量

157

期刊介绍： The Pacific-Basin Finance Journal is aimed at providing a specialized forum for the publication of academic research on capital markets of the Asia-Pacific countries. Primary emphasis will be placed on the highest quality empirical and theoretical research in the following areas: • Market Micro-structure; • Investment and Portfolio Management; • Theories of Market Equilibrium; • Valuation of Financial and Real Assets; • Behavior of Asset Prices in Financial Sectors; • Normative Theory of Financial Management; • Capital Markets of Development; • Market Mechanisms.