The Background of CEOs in Information Technology and Corporate Total Factor Productivity: An Analysis of the Mediating Effect of Digital Transformation

This study utilizes data from China’s A-share listed firms from 2007 to 2021, employing the LP and OP methods to construct total factor productivity indicators, and investigates the relationship between CEOs’ information technology backgrounds and corporate total factor productivity, further exploring the mechanisms of this relationship. The study reveals a significant positive impact of CEOs’ information technology backgrounds on corporate total factor productivity. To ensure the reliability of the findings, the average and lagged values of CEOs’ information technology backgrounds were selected as instrumental variables, and the two-stage least squares method and propensity score matching were used to address endogeneity issues. Robustness checks, including the lagging of the dependent variable, confirmed the stability of the conclusions. Further analysis of the impact mechanisms indicates that CEOs’ information technology backgrounds enhance total factor productivity by promoting digital transformation within firms. Heterogeneity analysis reveals that the positive effect of CEOs’ information technology backgrounds on total factor productivity is significant in firms with high financing constraints and agency costs but not evident in those with low financing constraints and agency costs. These findings provide valuable insights for the selection of CEOs, support for digital transformation initiatives, enhancement of total factor productivity, and promotion of high-quality development.