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Information spillover effects of corporate digital transformation

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  • Wang, Ting
  • Wang, Jiangyuan

Abstract

This paper investigates the information spillover effects of corporate digital transformation (CDT) from the perspective of analysts’ earnings forecast accuracy, drawing on data from Chinese listed firms. We find that CDT significantly improves forecast accuracy and reduces forecast dispersion, confirming the presence of positive information externalities. Mechanism analyses indicate that these spillovers operate through enhanced management disclosure and intensified analyst information search. Furthermore, the effects are most pronounced among firms with high agency costs, high risk, and high complexity, highlighting the role of digitalization in mitigating severe information frictions. Our study contributes to the economics of information by documenting how corporate digitalization generates knowledge spillovers that enhance market efficiency. The findings provide a microeconomic rationale for targeted public policies that incentivize digital transformation in sectors where information asymmetries are most detrimental to resource allocation.

Suggested Citation

  • Wang, Ting & Wang, Jiangyuan, 2026. "Information spillover effects of corporate digital transformation," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 274-286.
    • Handle: RePEc:eee:ecanpo:v:89:y:2026:i:c:p:274-286
    DOI: 10.1016/j.eap.2025.12.011
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    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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