Can corporate digital transformation help curb the hollowing out of major shareholders?

——Empirical research based on China’s A-share listed companies

DOI

10.2991/978-94-6463-459-4_53How to use a DOI?

Keywords

enterprise digital transformation; corporate governance; hollowing out of major shareholders; financing constraints; earnings management; Law, social and behavioral sciences Economics

Abstract

Digital transformation has brought about major changes in the business model and governance mechanism of enterprises. Will this help curb the behavior of major shareholders hollowing out the company? Taking China’s A-share listed companies from 2010 to 2021 as the research object, the impact of corporate digital transformation on the hollowing out of major shareholders was empirically tested. Research results show that corporate digital transformation can inhibit major shareholders from hollowing out the company; analysis of the mechanism of action shows that corporate digital transformation inhibits major shareholders from hollowing out by easing financing constraints and reducing earnings management. Heterogeneity analysis shows that enterprise digital transformation has a more significant impact on western regions and non-state-owned enterprises. The research conclusion helps clarify the impact of corporate digital transformation on corporate governance and major shareholder hollowing out, and also provides a new idea for suppressing the hollowing out behavior of major shareholders of listed companies.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Jun Zhou
AU  - Lingyu Zhu
PY  - 2024
DA  - 2024/07/23
TI  - Can corporate digital transformation help curb the hollowing out of major shareholders?
BT  - Proceedings of the 2024 9th International Conference on Social Sciences and Economic Development (ICSSED 2024)
PB  - Atlantis Press
SP  - 442
EP  - 457
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-459-4_53
DO  - 10.2991/978-94-6463-459-4_53
ID  - Zhou2024
ER  -