Minority Shareholders’ Activism and Corporate Digital Transformation
DOI:
https://doi.org/10.54691/bcpbm.v49i.5443Keywords:
Corporate Digital Transformation; Minority Shareholders’ Activism; Corporate Governance.Abstract
Promoting corporate digitalization is necessary to ensure the high-quality development of the digital economy, whose transformation is often decided by enterprise management. In the Internet age, network interactive platforms such as “e Interaction in Shanghai Stock Exchange” and “Easy Interaction in Shenzhen Stock Exchange” provide minority shareholders with the right to speak and functions including external supervision and governance that they do not have in traditional corporate governance. Based on the sample data of A-share and non-financial listed companies from 2011 to 2021, this paper adopts the panel data fixed effect model to investigate the influence and mechanism of minority shareholders’ activism on corporate digital transformation. It is found that the attention paid to digitalization by minority shareholders significantly promotes corporate digital transformation, which is still valid after a series of robustness tests. Further research proves that minority shareholders’ activism improves corporate digital transformation by alleviating the intermediary effect between managerial myopia and corporate financing constraints. According to the results of the adjustment effect test, compared with predictable economic policies, the increasing uncertainty of economic policies weakens the promotion of minority shareholders’ activism. Besides, compared with the corporate decentralized power, the centralized management power stimulates the full play of minority shareholders’ activism to perform the supervision and governance. This study provides inspires an in-depth understanding of how to play the role of minority shareholders in the digital transformation and corporate upgrading up against the digital economy.
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