Research On The Impact Of Enterprise Digital Transformation On Stock Mispricing

In the capital market,stock prices deviate from the intrinsic value of enterprises from time to time,and stock mispricing is more common.As one of the important indicators to measure the efficiency of stock pricing,mispricing will not only affect the efficiency of resource allocation in the capital market,but also have a non-negligible impact on the development of real economy.Since the operating system of our capital market is relatively unsound,the phenomenon of stock mispricing is more serious,so it is of great practical significance to study the problem of stock mispricing in China’s capital market.In recent years,the development of the digital economy has been in full swing,and enterprise digital transformation has gradually become an inevitable trend.More and more companies are enjoying the dividends of digital transformation.In this context,this paper selects A-share listed companies on the Shanghai Stock Exchange and Shenzhen Stock Exchange in China from 2007 to 2021 as a research sample to construct enterprise digital transformation indicators and empirically study the impact of enterprise digital transformation on stock mispricing.Secondly,this paper uses the mediation effect model to explore the possible impact mechanism.In addition,this paper performs robustness tests on the regression results by replacing the explanatory variables,removing the abnormal stock market effects and eliminating endogeneity by using the instrumental variables method.Finally,this paper explores the heterogeneous characteristics of the impact of enterprise digital transformation on the mispricing level of stocks from three perspectives: the nature of property rights,the life cycle of enterprises and the deviation of stock prices.The main findings of this paper are as follows:(1)Enterprise digital transformation can reduce the level of stock mispricing.(2)The corrective effect of digital transformation on stock mispricing can be achieved by improving the quality of information disclosure and the attention of analysts.(3)Compared to SOEs,digital transformation of non-SOEs can significantly reduce the level of stock mispricing.(4)In terms of the lifecycle stage of companies,the effectiveness of digital transformation in growth stage companies is not obvious,while digital transformation in mature and declining stage companies can significantly reduce the level of stock mispricing.(5)There are regional differences in the impact of enterprise digital transformation on the level of stock mispricing.Digital transformation of enterprises in the East and Central regions can significantly reduce the level of stock mispricing,while digital transformation of enterprises in the West and Northeast is not effective.This paper expands the ways to reduce the level of stock mispricing and explains the dividends brought by digital transformation to enterprise development from a relatively novel perspective,which has important theoretical and practical significance for promoting enterprise digital transformation and improving the pricing efficiency of the capital market.There are three main innovations in this paper:(1)A useful addition to the research related to the impact factors of stock mispricing from the perspective of digital transformation.(2)It enriches and expands the research on the impact of digital transformation on capital markets by taking stock mispricing as the core element of the research.(3)The mechanism paths and heterogeneous characteristics of the enterprise digital transformation affecting stock mispricing are explored in depth.In addition,based on the findings,this paper provides corresponding policy recommendations for promoting enterprise digital transformation and improving the pricing efficiency of capital markets from four perspectives: governments,enterprises,regulators and investors.