Research On The Influence Of Enterprise Digital Transformation On Internal Control Quality

Digital transformation of enterprises refers to the combination of production,management and sales with cloud computing,Internet,big data and other emerging digital technologies,which is the specific manifestation of digital technology at the enterprise level.In the thriving environment of the development of digital economy,digital transformation is a necessary measure for enterprises to adapt to the market,and it is also an inevitable choice for transformation and upgrading.As for the internal control of enterprises,the change of market environment and the formulation of enterprise strategy will have an impact on the quality and efficiency of the internal control work.Therefore,this paper takes the A-share listed companies in Shanghai and Shenzhen from 2008 to 2021 as samples to investigate the impact of enterprise digital transformation on the quality of internal control and the ways through which such impact can be generated.The results show that digital transformation can improve the quality of internal control.This conclusion remains robust after taking into account such endogenous issues as index sensitivity,sample selectivity bias,reverse causality,and industry and individual differences.Mesomeric effect test shows that digital transformation of enterprises significantly improves the quality of internal control of enterprises by improving the five aspects of risk assessment,control activities,information and communication,internal supervision and internal environment.In addition,heterogeneity test results show that the role of digital transformation in improving the quality of internal control is more significant in the samples of non-state-owned enterprises and enterprises with higher marketization level.Further research shows that the improvement of internal control quality by the digital transformation of enterprises will ultimately improve the total factor productivity of enterprises.This study will enrich and develop the relevant theories of digital transformation of enterprises,provide an empirical basis for the positive effect of digitalization in modern enterprise governance,and provide a decision-making basis for promoting digital transformation of enterprises and improving the internal control level of enterprises.