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Executive digital backgrounds and firm investment efficiency

Author

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  • Yang, Hong
  • Pan, Yuzhen

Abstract

Digital technologies have substantially reshaped corporate decision-making processes. This research aims to explore how executives’ digital backgrounds influence firms’ investment outcomes. Grounded in a large dataset of listed Chinese companies between 2016 and 2024, we found robust evidence that companies led by executives with digital backgrounds exhibit significantly higher investment efficiency, especially among technology-intensive firms and those surrounded by higher information asymmetry. The positive relation persists after a battery of econometric tests. Further analyses reveal that data-driven decision-making and alternative financing options serve as key mechanisms. Overall, this study advances the burgeoning research on management teams and corporate investment.

Suggested Citation

  • Yang, Hong & Pan, Yuzhen, 2026. "Executive digital backgrounds and firm investment efficiency," Finance Research Letters, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:finlet:v:92:y:2026:i:c:s1544612326000590
    DOI: 10.1016/j.frl.2026.109528
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    References listed on IDEAS

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