Research on the Impact of Enterprise Digital Transformation on The Impact of Corporate Digital Transformation on Stock Price Synchronization: Evidence from Chinese A-share Listed Firms

Abstract

The digital transformation of enterprises is a major trend among firms currently. Clarifying its impact on stock price synchronization is a basic issue to explore how the digital transformation of enterprises can empower the capital market. Based on the data of Chinese Shanghai and Shenzhen A-share listed companies from 2010 to 2024, this paper studies the impact of digital transformation of Chinese companies on stock price synchronization. The results show that digital transformation will lead to stock price synchronization. The mechanism analysis shows that the digital transformation of enterprises improves corporate governance level and improves the stock price synchronization of the external path that analysts pay attention to. Furthermore, the efficiency of enterprise digital transformation on stock price synchronization is more significant in industries with a high level of marketization and fierce competition and small-scale enterprises. This article provides data for a deep understanding of the impact of digital transformation on stock price synchronization, provides theoretical support based on pricing efficiency for the digital transformation of enterprises to drive high capital markets, and has beneficial enlightenment for gradually improving the allocation of resources in the capital market.