Is digital finance always beneficial to accounting information transparency? Evidence from China
Using a sample of Chinese listed firms over 2011–2020, this study examines the impact of digital finance on accounting information transparency. Our findings reveal an inverted U-shaped relationship between digital finance and accounting information transparency, suggesting that digital finance with...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2024-04-01
|
| Series: | China Journal of Accounting Studies |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/21697213.2024.2347234 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850032075595317248 |
|---|---|
| author | Xingqiang Du Jing Hong Hexin Tao Yongkui Zhang |
| author_facet | Xingqiang Du Jing Hong Hexin Tao Yongkui Zhang |
| author_sort | Xingqiang Du |
| collection | DOAJ |
| description | Using a sample of Chinese listed firms over 2011–2020, this study examines the impact of digital finance on accounting information transparency. Our findings reveal an inverted U-shaped relationship between digital finance and accounting information transparency, suggesting that digital finance within certain limits increases accounting information transparency by optimising information acquisition and processing, but excessive digital finance leads to information overload and impairs accounting information transparency. Our findings are robust to a variety of sensitivity tests and are still valid after using two-stage “shift-share” instrumental variable procedures, propensity score matching method and firm-level fixed effect regression to control for the endogeneity issue. Lastly, MD&A and annual reporting disclosure timeliness are two influential channels by which digital finance affects accounting information transparency, and further the inverted U-shaped relationship is more pronounced for firms in provinces with lower marketisation indexes (CEO-chairman duality) than for their counterparts. |
| format | Article |
| id | doaj-art-362ba45df09d416eb7ea4e49ac59d66f |
| institution | DOAJ |
| issn | 2169-7213 2169-7221 |
| language | English |
| publishDate | 2024-04-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | China Journal of Accounting Studies |
| spelling | doaj-art-362ba45df09d416eb7ea4e49ac59d66f2025-08-20T02:58:46ZengTaylor & Francis GroupChina Journal of Accounting Studies2169-72132169-72212024-04-0112227631010.1080/21697213.2024.2347234Is digital finance always beneficial to accounting information transparency? Evidence from ChinaXingqiang Du0Jing Hong1Hexin Tao2Yongkui Zhang3Center for Accounting Studies, Xiamen University, Xiamen, ChinaAccounting Department, Xiamen University, Xiamen, ChinaAccounting Department, Xiamen University, Xiamen, ChinaAccounting Department, Xiamen University, Xiamen, ChinaUsing a sample of Chinese listed firms over 2011–2020, this study examines the impact of digital finance on accounting information transparency. Our findings reveal an inverted U-shaped relationship between digital finance and accounting information transparency, suggesting that digital finance within certain limits increases accounting information transparency by optimising information acquisition and processing, but excessive digital finance leads to information overload and impairs accounting information transparency. Our findings are robust to a variety of sensitivity tests and are still valid after using two-stage “shift-share” instrumental variable procedures, propensity score matching method and firm-level fixed effect regression to control for the endogeneity issue. Lastly, MD&A and annual reporting disclosure timeliness are two influential channels by which digital finance affects accounting information transparency, and further the inverted U-shaped relationship is more pronounced for firms in provinces with lower marketisation indexes (CEO-chairman duality) than for their counterparts.https://www.tandfonline.com/doi/10.1080/21697213.2024.2347234Digital financeaccounting information transparencythe inverted U-shaped relationshipinformation overload |
| spellingShingle | Xingqiang Du Jing Hong Hexin Tao Yongkui Zhang Is digital finance always beneficial to accounting information transparency? Evidence from China China Journal of Accounting Studies Digital finance accounting information transparency the inverted U-shaped relationship information overload |
| title | Is digital finance always beneficial to accounting information transparency? Evidence from China |
| title_full | Is digital finance always beneficial to accounting information transparency? Evidence from China |
| title_fullStr | Is digital finance always beneficial to accounting information transparency? Evidence from China |
| title_full_unstemmed | Is digital finance always beneficial to accounting information transparency? Evidence from China |
| title_short | Is digital finance always beneficial to accounting information transparency? Evidence from China |
| title_sort | is digital finance always beneficial to accounting information transparency evidence from china |
| topic | Digital finance accounting information transparency the inverted U-shaped relationship information overload |
| url | https://www.tandfonline.com/doi/10.1080/21697213.2024.2347234 |
| work_keys_str_mv | AT xingqiangdu isdigitalfinancealwaysbeneficialtoaccountinginformationtransparencyevidencefromchina AT jinghong isdigitalfinancealwaysbeneficialtoaccountinginformationtransparencyevidencefromchina AT hexintao isdigitalfinancealwaysbeneficialtoaccountinginformationtransparencyevidencefromchina AT yongkuizhang isdigitalfinancealwaysbeneficialtoaccountinginformationtransparencyevidencefromchina |