Research On The Influence Of Digital Transformation On Market Valuation Errors

The efficient market hypothesis plays a very important role in the neoclassical stock investment theory.In an ideal state,a completely efficient market can fully and timely reflect all valuable information,and the market price is the true value of securities.Market valuation errors can effectively measure the company specific information content in stock prices.Many studies show that the degree of valuation errors in China’s capital market is higher than that in western developed capital markets,which indicates that in reality,the company specific information in China’s market is difficult to fully reflect in stock prices,and market participants cannot make accurate judgments on the true value of stocks.Since the development strategy of "accelerating the construction of digital China" was proposed,enterprises have set off a wave of digital transformation.Compared with traditional industries,digital economy is a new economic form based on the information technology industry under the rapid development of digital technology,which is formed by using digital empowerment of traditional industries.The development of digital economy has promoted the flow and distribution of data elements in the market and among various subjects in the market.Digital transformation has provided information communication channels for enterprises and the outside world,and enhanced enterprises’ digital governance capabilities.Based on this,this paper,based on the background of the digital era,explores the impact of enterprise digital transformation on market valuation errors.To begin,this paper combs the research on digital transformation of enterprises and market valuation bias;Secondly,This paper empirically examines the effects of enterprise digital transformation on market valuation errors from both micro and macro entities,proposing corresponding research assumptions;Finally,Utilizing panel data from Ashare listed companies from 2014 to 2020 as the research sample,this paper empirically studies the impact of enterprise digital transformation on market valuation errors and the regulatory effect of regional digital economy development level.The research results show that the digital transformation of enterprises can significantly reduce the deviation of the stock market value from the intrinsic value.As the digital economy advances,the effect becomes more pronounced;Further research shows that the impact mechanism is the improvement of the quality of corporate information disclosure,the improvement of corporate performance and the inhibition of management opportunism.This paper provides practical guidance for enterprises,governments and market investors,and has practical significance on how to improve the effectiveness of China’s securities market and improve the efficiency of resource allocation under the background of big data in the new era.