Jiang, Jin, Lu, Xiangyun, Xie, Li, Ye, Rui ORCID: https://orcid.org/0000-0002-9366-648X and Cheng, Peng (2025) The impact of managerial attention to digital transformation on stock price synchronicity from the dynamic capability perspective. Journal of International Accounting, Auditing and Taxation (JIAAT). ISSN 1061-9518 (Print), 1879-1603 (Online) (In Press)

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Abstract

This study examines how two components of digital transformation (DT), DT integration and DT innovation, influence stock price synchronicity. We view this question through a corporate governance lens, drawing on dynamic capabilities theory. Using textual analysis of MD&A disclosures from Chinese listed firms from 2010 to 2021, we measure managerial attention to DT integration and innovation, revealing their distinct roles in governance. DT integration, which often generates verifiable metrics, reduces stock price synchronicity by enhancing transparency, attracting long-term institutional investors, improving financial reporting quality, and refining analyst forecasts. In contrast, soft information about DT innovation fails to mitigate opacity and increases synchronicity in weak governance environments. Cross-sectional analyses show that integration’s governance benefits persist across institutional settings, while innovation’s effects hinge on external safeguards. Our findings emphasize that DT integration, which reflects a firm’s ability to reconfigure resources for sustained competitiveness, serves as a robust governance tool to enhance market efficiency. Policymakers and firms should prioritize integration-driven strategies to foster transparency while treating innovation’s speculative narratives with caution. This research redefines DT as a dual-process phenomenon, offering actionable insights for aligning digital strategies with governance frameworks in emerging markets.

Item Type:	Article
Uncontrolled Keywords:	Digital Transformation (DT), DT innovation, DT integration, stock price synchronicity, dynamic capabilities, textual analysis
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance T Technology > T Technology (General)
Faculty / School / Research Centre / Research Group:	Greenwich Business School Greenwich Business School > Political Economy, Governance, Finance and Accountability (PEGFA) Journal of Economic Literature Classification > Political Economy, Governance, Finance and Accountability (PEGFA) Greenwich Business School > Political Economy, Governance, Finance and Accountability (PEGFA) > Centre for Governance, Risk and Accountability (CGRA) Journal of Economic Literature Classification > Political Economy, Governance, Finance and Accountability (PEGFA) > Centre for Governance, Risk and Accountability (CGRA) Greenwich Business School > School of Accounting, Finance and Economics
Last Modified:	13 Aug 2025 10:57
URI:	https://gala.gre.ac.uk/id/eprint/50926

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