"Digitwashing": The Gap between Words and Deeds in Digital Transformation and Stock Price Crash Risk
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.
Code (0)
등록된 구현이 없습니다.
Tasks
validSimilar Papers 제목 키워드 기반
Large Language Models Often Say One Thing and Do Another
As large language models (LLMs) increasingly become central to various applications and interact with diverse user populations, ensuring their reliable and consistent performance is becoming more important. This paper ex…
Word AlignmentComparative Analysis of Static and Contextual Embeddings for Analyzing Semantic Changes in Medieval Latin Charters
The Norman Conquest of 1066 C.E. brought profound transformations to England's administrative, societal, and linguistic practices. The DEEDS (Documents of Early England Data Set) database offers a unique opportunity to e…
Word EmbeddingsSocial Sustainability of Digital Transformation: Empirical Evidence from EU-27 Countries
In the EU-27 countries, the importance of social sustainability of digital transformation (SOSDIT) is heightened by the need to balance economic growth with social cohesion. By prioritizing SOSDIT, the EU can ensure that…
Simple pairs of points in digital spaces. Topology-preserving transformations of digital spaces by contracting simple pairs of points
Transformations of digital spaces preserving local and global topology play an important role in thinning, skeletonization and simplification of digital images. In the present paper, we introduce and study contractions o…
AI-Driven Digital Transformation and Firm Performance in Chinese Industrial Enterprises: Mediating Role of Green Digital Innovation and Moderating Effects of Human-AI Collaboration
This study examines the relationship between AI-driven digital transformation and firm performance in Chinese industrial enterprises, with particular attention to the mediating role of green digital innovation and the mo…
Management