The Impact of Digital Transformation on Excessive Investment by Enterprises
DOI:
https://doi.org/10.54691/r8zh8d54Keywords:
Digital Transformation; Investment Efficiency; Overinvestment.Abstract
Against the backdrop of the nation’s drive to develop new-quality productive forces, the digital transformation of enterprises-with its ability to provide a powerful source of technological momentum-has become a key pathway to achieving high-quality development. Overinvestment is a widespread phenomenon amongst listed companies in China; therefore, investigating the impact of digital transformation on the investment efficiency of these enterprises holds significant theoretical and practical value for enhancing the global competitiveness of Chinese enterprises and informing policy-making.This paper uses Chinese A-share listed companies from 2011 to 2024 as the research sample and employs fixed-effects and mediation models for analysis. The empirical results indicate that digital transformation can significantly improve the investment efficiency of enterprises engaged in excessive investment, a finding that remains valid after a series of robustness tests;digital transformation curbs inefficient investment through three channels: reducing agency costs, alleviating financing constraints and enhancing information transparency; there are significant differences in the effectiveness of transformation across enterprises in different regions, industries and with different ownership structures. Based on the above findings, this paper proposes that efforts should be made to promote digital transformation among enterprises, strengthen policy support, innovate investment and financing models, foster coordinated development across regions, improve governance systems, and establish an evaluation mechanism for digital transformation.
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