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How does digital transformation affect corporate total factor productivity?

Author

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  • Yang, Yingya
  • Jin, Yifei
  • Xue, Qinyuan
Abstract
This paper investigates the impact of digital transformation on corporate total factor productivity (TFP). Using data from publicly listed Chinese corporations, empirical analysis shows a significant positive effect on corporate TFP. Various robustness and endogeneity tests consistently support this result. Furthermore, mechanism analysis reveals that digital transformation boosts corporate TFP by enhancing innovation capability and cost control. Heterogeneity analysis demonstrates that corporate size and the industry's technological environment influence the extent of this effect; in large corporations and non-high-tech industries, the positive impact on corporate TFP is more pronounced.

Suggested Citation

  • Yang, Yingya & Jin, Yifei & Xue, Qinyuan, 2024. "How does digital transformation affect corporate total factor productivity?," Finance Research Letters, Elsevier, vol. 67(PB).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pb:s1544612324008808
    DOI: 10.1016/j.frl.2024.105850
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    References listed on IDEAS

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    Cited by:

    1. Fan, Hongwei & Yin, Junming & Usman, Muhammad & Li, Zhengguang, 2024. "Intellectual property protection and total factor productivity of enterprises: A quasi-natural experiment of intellectual property courts," Finance Research Letters, Elsevier, vol. 70(C).

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