IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v88y2026ics1544612325023840.html

CEO digital background and corporate digitalization: the role of regional policy

Author

Listed:
  • Zhuang, HanYu
  • Gao, Lei
  • Li, Jinhuan

Abstract

The present paper delves into the implications of CEO digital background for corporate digitalization. Employing a large panel of listed companies in Shanghai and Shenzhen Stock Exchanges from 2012 to 2024, this study unveils that CEOs’ digital background dramatically accelerates their firms’ digital transformation. Moreover, this impact is more evident when there are supporting regional policies. Our conclusions are robust to various econometric tests, including the DID method and PSM approach. Furthermore, we also identify crucial mechanisms: improved investment in digital technologies and strengthened training programs. In sum, by gaining novel insights into the link between CEO digital background and corporate digitalization, as well as the moderating role of regional policy, this study advances the extant economics research on the upper echelons theory and digital transformation.

Suggested Citation

  • Zhuang, HanYu & Gao, Lei & Li, Jinhuan, 2026. "CEO digital background and corporate digitalization: the role of regional policy," Finance Research Letters, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:finlet:v:88:y:2026:i:c:s1544612325023840
    DOI: 10.1016/j.frl.2025.109135
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325023840
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.109135?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Zhang, Kaixia & Bu, Caiqi, 2024. "Top managers with information technology backgrounds and digital transformation: Evidence from small and medium companies," Economic Modelling, Elsevier, vol. 132(C).
    2. Qianru Liu & Jianmei Liu & Cheng Gong, 2023. "Digital transformation and corporate innovation: A factor input perspective," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2159-2174, June.
    3. Xiaozhen Pan & Gengxi Xu, 2025. "Can regional innovation policies promote corporate digital transformation? Empirical evidence from China’s national innovation demonstration zones," Applied Economics, Taylor & Francis Journals, vol. 57(39), pages 6007-6025, August.
    4. Riadh Manita & Najoua Elommal & Patricia Baudier & Lubica Hikkerova, 2020. "The digital transformation of external audit and its impact on corporate governance," Post-Print hal-04314467, HAL.
    5. Juan He & Xiaodong Du & Wei Tu, 2024. "Can corporate digital transformation alleviate financing constraints?," Applied Economics, Taylor & Francis Journals, vol. 56(20), pages 2434-2450, April.
    6. Geng, Yini & Zheng, Zhiqiang & Ma, Yongjian, 2023. "Digitization, perception of policy uncertainty, and corporate green innovation: A study from China," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 544-557.
    7. Cui, Lin & Wang, Yanshu, 2023. "Can corporate digital transformation alleviate financial distress?," Finance Research Letters, Elsevier, vol. 55(PB).
    8. Chao Wang & Man Zhang, 2022. "The road to change: Broadband China strategy and enterprise digitization," PLOS ONE, Public Library of Science, vol. 17(5), pages 1-18, May.
    9. Zhang, Wenzhe & Liu, Guangqiang, 2023. "Digitalization and firm centralization: A quasi-natural experiment based on the “Broadband China” policy," Finance Research Letters, Elsevier, vol. 52(C).
    10. Shanshan Gao & Wenqi Li & Jiayi Meng & Jianfeng Shi & Jianhua Zhu, 2023. "A Study on the Impact Mechanism of Digitalization on Corporate Green Innovation," Sustainability, MDPI, vol. 15(8), pages 1-21, April.
    11. Xu, Yanhui & Deng, Fuhua & Feng, Qianbin, 2025. "The effect of tax enforcement digitalization on corporate digital transformation: Evidence from China's listed companies," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1105-1134.
    12. Yang, Yu-Xin & Liu, Jing-Yue, 2025. "Empowering green growth: The role of corporate digital transformation in boosting renewable energy investment in China," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 590-605.
    13. Zhao, Shuang & Guan, Yunfang & Zhou, Haiyan & Hu, Feng, 2024. "Making digital technology innovation happen: The role of the CEO's information technology backgrounds," Economic Modelling, Elsevier, vol. 140(C).
    14. Yun Shen & Damien Wallace & Krishna Reddy & Vikash Ramiah, 2022. "An investigation of CEO characteristics on firm performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 3563-3607, September.
    15. Nelson, James, 2005. "Corporate governance practices, CEO characteristics and firm performance," Journal of Corporate Finance, Elsevier, vol. 11(1-2), pages 197-228, March.
    16. Huang, Heshu & Wang, Caiting & Wang, Liukai & Yarovaya, Larisa, 2023. "Corporate digital transformation and idiosyncratic risk: Based on corporate governance perspective," Emerging Markets Review, Elsevier, vol. 56(C).
    17. Anxuan Jiang & Jianteng Ma & Zhitao Wang & Ming Zhou, 2024. "Does knowledge of digital technology affect corporate innovation? Evidence from CEOs with digital technology backgrounds in China," Applied Economics, Taylor & Francis Journals, vol. 56(49), pages 5939-5956, October.
    18. He, Bingquan & Gan, Lu, 2025. "Exploring the synergistic effect of CEO power and technological expertise in driving corporate digital transformation," International Review of Financial Analysis, Elsevier, vol. 98(C).
    19. Zhang, Xinhe & Yue, Shujing & Tao, Jiayi & Lai, Xiaobing, 2025. "Does digital transformation affect corporate mergers and acquisitions? From the perspective of information asymmetry," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 764-778.
    20. Manita, Riadh & Elommal, Najoua & Baudier, Patricia & Hikkerova, Lubica, 2020. "The digital transformation of external audit and its impact on corporate governance," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    21. Tian, Guangning & Li, Bo & Cheng, Yue, 2022. "Does digital transformation matter for corporate risk-taking?," Finance Research Letters, Elsevier, vol. 49(C).
    22. Zhou, Zhongsheng & Li, Zhuo, 2023. "Corporate digital transformation and trade credit financing," Journal of Business Research, Elsevier, vol. 160(C).
    23. Dou, Bin & Guo, SongLin & Chang, XiaoChen & Wang, Yong, 2023. "Corporate digital transformation and labor structure upgrading," International Review of Financial Analysis, Elsevier, vol. 90(C).
    24. Zhuo Cheng & Tajul Ariffin Masron, 2023. "Economic policy uncertainty and corporate digital transformation: evidence from China," Applied Economics, Taylor & Francis Journals, vol. 55(40), pages 4625-4641, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Han, Zhihui & Wang, Zhitao, 2025. "Digitalization and supply chain finance risk: Evidence from listed firms in the construction industry," Finance Research Letters, Elsevier, vol. 74(C).
    2. Cui, Fang & Liu, Wei, 2025. "Digital transformation, factor flow, and innovation output," Finance Research Letters, Elsevier, vol. 86(PF).
    3. Wei, Cui & Zhou, Hang & Zhang, Xinrui & Ouyang, Shuang, 2025. "The dark side of digital transformation: Digital washing and accounting conservatism," International Review of Economics & Finance, Elsevier, vol. 98(C).
    4. Xu, Chongchong & Lin, Boqiang, 2025. "The AI-sustainability Nexus: How does intelligent transformation affect corporate green innovation?," International Review of Financial Analysis, Elsevier, vol. 102(C).
    5. Yu, Ying & Wu, Haoyang & Tan, Yijiang, 2025. "Does digitalizing supply chains enhance corporate financial stability?," International Review of Financial Analysis, Elsevier, vol. 107(C).
    6. Wang, Baoyi & Khan, Inayat & Ge, Chenlu & Naz, Huma, 2024. "Digital transformation of enterprises promotes green technology innovation – The regulated mediation model," Technological Forecasting and Social Change, Elsevier, vol. 209(C).
    7. Feng, Qianbin & Ge, Ying & Zhao, Lexin, 2024. "Tax incentives and corporate digital transformation: Evidence from China’s accelerated depreciation policy," Journal of Asian Economics, Elsevier, vol. 95(C).
    8. Hu, Bo & Li, Mingyan, 2025. "Industry concentration and the adoption of digital finance technology: Evidence from sports industries," Finance Research Letters, Elsevier, vol. 85(PE).
    9. Ye, Xincai & Miao, Lin, 2025. "Digital transformation and green finance efficiency of tourism enterprises: The effect of credit ratings," International Review of Financial Analysis, Elsevier, vol. 106(C).
    10. Jiang, Yiyun & Wang, Xiufeng & Sam, Toong Hai & Vasudevan, Asokan, 2024. "Digital transformation, equity pledge and labor income share," Finance Research Letters, Elsevier, vol. 64(C).
    11. Xu, Yanhui & Deng, Fuhua & Feng, Qianbin, 2025. "The effect of tax enforcement digitalization on corporate digital transformation: Evidence from China's listed companies," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1105-1134.
    12. Jia Liu & Jingyao Li & Shuwei Wang, 2025. "Do Executives with IT Backgrounds Influence the Selection of Corporate Auditors in the Context of Digital Innovation?—An Examination from a Sustainability Perspective," Sustainability, MDPI, vol. 17(19), pages 1-19, October.
    13. Xiao, Zhongyi & Li, Yuanling & Xiang, Cheng, 2025. "Do suppliers value customer firms' digital transformation? Evidence from trade credit provision," International Review of Financial Analysis, Elsevier, vol. 99(C).
    14. Ying Wu & Yuanyue Deng, 2024. "Does digital transformation crowd out the employment of lower skill labor?," Bulletin of Economic Research, Wiley Blackwell, vol. 76(3), pages 726-748, July.
    15. Guo, Panting & Bi, Jiefeng & Zhu, Mengnan, 2025. "Enterprise digital transformation and investment efficiency: Empirical evidence from listed enterprises in China," Journal of Asian Economics, Elsevier, vol. 97(C).
    16. Wu, Kai & Lu, Yufei, 2023. "Corporate digital transformation and financialization: Evidence from Chinese listed firms," Finance Research Letters, Elsevier, vol. 57(C).
    17. Lu, Zhiqiang & Li, Hongyu, 2023. "Does environmental information disclosure affect green innovation?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 47-59.
    18. Liu, Dongxia & Chen, Liming, 2025. "Supply chain innovation support policies, financing constraints, and corporate digital transformation," International Review of Financial Analysis, Elsevier, vol. 108(PA).
    19. Zhang, Chaolin & Deng, Yongqi, 2024. "How does digital transformation affect firm technical efficiency? Evidence from China," Finance Research Letters, Elsevier, vol. 69(PA).
    20. Guangchen Li & Qianlong Ma & Haoyan Leng & Guoyiming Zhu, 2026. "Can digital transformation promote the green development of manufacturing enterprises? Evidence from China," Electronic Commerce Research, Springer, vol. 26(1), pages 185-212, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:88:y:2026:i:c:s1544612325023840. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.