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Public attention, political ties and digital transformation of private enterprises: Evidence from the Hurun Rich List in China

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  • Zou, Jingxian
  • Pan, Yinghao
  • Shu, Fangyu
  • Jin, Miao

Abstract

This paper investigates how public attention affects digital transformation in Chinese private enterprises through the lens of the Hurun Rich List, a prominent ranking of China's wealthiest individuals. Using difference-in-differences analysis of publicly listed firms from 2011 to 2021, we find that companies whose controllers appear on the rich list significantly increase their digital transformation efforts by 0.581 units (1.6 % relative to sample mean). This effect is economically meaningful, equivalent to 42 % of the impact from a one standard deviation increase in firm size. The digital transformation response is stronger for firms lacking political connections, as enhanced visibility motivates innovation among these firms. In contrast, politically connected firms show minimal transformation improvements despite facing increased regulatory scrutiny, suggesting they neither leverage their connections for protection nor accelerate digital initiatives following public recognition.

Suggested Citation

  • Zou, Jingxian & Pan, Yinghao & Shu, Fangyu & Jin, Miao, 2025. "Public attention, political ties and digital transformation of private enterprises: Evidence from the Hurun Rich List in China," Journal of Economic Behavior & Organization, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:jeborg:v:234:y:2025:i:c:s0167268125001490
    DOI: 10.1016/j.jebo.2025.107030
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