Enterprise digital transformation and inefficient investment: from the perspective of diversified operations and environmental uncertainty
Abstract Amid escalating economic complexity, can digital transformation address persistent corporate investment inefficiencies? Utilizing data from Shanghai and Shenzhen A-share listed companies during 2012–2023, this study examines how digital transformation influences inefficient investment under...
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| Format: | Article |
| Language: | English |
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Springer Nature
2025-08-01
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| Series: | Humanities & Social Sciences Communications |
| Online Access: | https://doi.org/10.1057/s41599-025-05591-4 |
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| author | Ziqian Peng Haiyang Zhang Peng Zhou Junlin Ren Yanbai Chen |
| author_facet | Ziqian Peng Haiyang Zhang Peng Zhou Junlin Ren Yanbai Chen |
| author_sort | Ziqian Peng |
| collection | DOAJ |
| description | Abstract Amid escalating economic complexity, can digital transformation address persistent corporate investment inefficiencies? Utilizing data from Shanghai and Shenzhen A-share listed companies during 2012–2023, this study examines how digital transformation influences inefficient investment under the dual pressures of operational diversification and environmental uncertainty. We employ a corporate digital transformation index evaluation system encompassing strategic guidance, technological enablement, organizational empowerment, environmental support, digital achievements and applications, and also ensure research reliability through neural network language models and Python crawlers. Empirical results demonstrate that digital transformation significantly inhibits inefficient investment, effectively mitigating both underinvestment and overinvestment. This inhibitory effect intensifies in firms with higher diversification levels and those operating in stable environments. Mechanism analysis identifies three key channels: improving internal governance, reducing information asymmetry, and alleviating financing constraints. Cross-sectional heterogeneity reveals more pronounced effects in high-tech firms, large enterprises, and companies in China’s economically advanced eastern and central regions. Our findings systematically clarify digital technology’s governance applications while providing actionable insights for optimizing corporate investment efficiency. |
| format | Article |
| id | doaj-art-2b00a443d6d5471f88760cde2fc1cb3e |
| institution | Kabale University |
| issn | 2662-9992 |
| language | English |
| publishDate | 2025-08-01 |
| publisher | Springer Nature |
| record_format | Article |
| series | Humanities & Social Sciences Communications |
| spelling | doaj-art-2b00a443d6d5471f88760cde2fc1cb3e2025-08-20T03:46:07ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-08-0112111610.1057/s41599-025-05591-4Enterprise digital transformation and inefficient investment: from the perspective of diversified operations and environmental uncertaintyZiqian Peng0Haiyang Zhang1Peng Zhou2Junlin Ren3Yanbai Chen4Hubei University of TechnologyHubei University of TechnologyFinancial Management Department, China MCC5 Group Corp. Ltd.School of Management, Wuhan Textile UniversityHubei University of TechnologyAbstract Amid escalating economic complexity, can digital transformation address persistent corporate investment inefficiencies? Utilizing data from Shanghai and Shenzhen A-share listed companies during 2012–2023, this study examines how digital transformation influences inefficient investment under the dual pressures of operational diversification and environmental uncertainty. We employ a corporate digital transformation index evaluation system encompassing strategic guidance, technological enablement, organizational empowerment, environmental support, digital achievements and applications, and also ensure research reliability through neural network language models and Python crawlers. Empirical results demonstrate that digital transformation significantly inhibits inefficient investment, effectively mitigating both underinvestment and overinvestment. This inhibitory effect intensifies in firms with higher diversification levels and those operating in stable environments. Mechanism analysis identifies three key channels: improving internal governance, reducing information asymmetry, and alleviating financing constraints. Cross-sectional heterogeneity reveals more pronounced effects in high-tech firms, large enterprises, and companies in China’s economically advanced eastern and central regions. Our findings systematically clarify digital technology’s governance applications while providing actionable insights for optimizing corporate investment efficiency.https://doi.org/10.1057/s41599-025-05591-4 |
| spellingShingle | Ziqian Peng Haiyang Zhang Peng Zhou Junlin Ren Yanbai Chen Enterprise digital transformation and inefficient investment: from the perspective of diversified operations and environmental uncertainty Humanities & Social Sciences Communications |
| title | Enterprise digital transformation and inefficient investment: from the perspective of diversified operations and environmental uncertainty |
| title_full | Enterprise digital transformation and inefficient investment: from the perspective of diversified operations and environmental uncertainty |
| title_fullStr | Enterprise digital transformation and inefficient investment: from the perspective of diversified operations and environmental uncertainty |
| title_full_unstemmed | Enterprise digital transformation and inefficient investment: from the perspective of diversified operations and environmental uncertainty |
| title_short | Enterprise digital transformation and inefficient investment: from the perspective of diversified operations and environmental uncertainty |
| title_sort | enterprise digital transformation and inefficient investment from the perspective of diversified operations and environmental uncertainty |
| url | https://doi.org/10.1057/s41599-025-05591-4 |
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