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Can digital process innovation alleviate the misallocation of corporate resources?

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  • Liu, Xiaoyu
  • Dong, Ximei

Abstract

Using data from Chinese A-share listed companies in Shanghai and Shenzhen from 2008 to 2023, this paper examines the impact of digital process innovation on corporate resource misallocation. The study finds that digital process innovation can significantly alleviate resource misallocation within firms; market competition significantly moderates the relationship between digital process innovation and resource misallocation; digital process innovation can mitigate corporate resource misallocation by enhancing information transparency; moreover, the effect of digital process innovation on resource misallocation exhibits significant heterogeneity between state-owned enterprises (SOEs) and private enterprises (PEs).

Suggested Citation

  • Liu, Xiaoyu & Dong, Ximei, 2025. "Can digital process innovation alleviate the misallocation of corporate resources?," Finance Research Letters, Elsevier, vol. 86(PD).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pd:s1544612325018732
    DOI: 10.1016/j.frl.2025.108619
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    References listed on IDEAS

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