IDEAS home Printed from https://ideas.repec.org/p/nan/wpaper/2302.html
   My bibliography  Save this paper

Exploring the Digital Era: Has Digital Technology Innovation Reshaped Investment Efficiency in Chinese Enterprises?

Author

Listed:
  • Xiaobing LAI

    (School of Economics & Management, Southeast University, Jiulong Lake Campus, Southeast University, Nanjing City, Jiangsu Province, P. R. China 211189; Economic Growth Centre, School of Social Sciences, Nanyang Technological University, 50 Nanyang Avenue, Singapore 639798)

  • Lei QUAN

    (School of Economics & Management, Southeast University, Jiulong Lake Campus, Southeast University, Nanjing City, Jiangsu Province, P. R. China 211189; Financial Technology Engineering and Technology Development Center, Guangdong University of Finance, Guangzhou City, Guangdong Province, P. R. China 510521)

  • Chong GUO

    (School of Economics & Management, Southeast University, Jiulong Lake Campus, Southeast University, Nanjing City, Jiangsu Province, P. R. China 211189)

  • Xing GAO

    (School of Finance & Economics, Hunan University of Finance and Economics, Changsha City, Hunan Province, P. R. China 410205)

Abstract

In the digital era, advancements in technologies such as artificial intelligence, big data, and cloud computing are revolutionizing corporate investment strategies, yet academic research has struggled to keep pace with these rapid developments. Utilizing data from 2005 to 2021 for Chinese A-share listed companies, this study examines the impact of digital technology innovation on corporate investment efficiency. The findings reveal that firms with higher levels of digital technology innovation tend to have greater investment efficiency. This improvement stems from the role of digital innovation in driving digital transformation, improving information quality, addressing management issues, reducing reliance on short-term financing, and lowering financial risks. Notably, the positive effects are more pronounced in non-state-owned enterprises, high-tech industries, and well-developed financial markets. The article broadens our understanding of the economic effects of digital technology innovation and the factors contributing to corporate investment efficiency growth strategies in a rapidly evolving digital economy.

Suggested Citation

  • Xiaobing LAI & Lei QUAN & Chong GUO & Xing GAO, 2023. "Exploring the Digital Era: Has Digital Technology Innovation Reshaped Investment Efficiency in Chinese Enterprises?," Economic Growth Centre Working Paper Series 2302, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    • Handle: RePEc:nan:wpaper:2302
    as

    Download full text from publisher

    File URL: https://web.hss.ntu.edu.sg/egc/wp/2023/2023-02.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

    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:nan:wpaper:2302. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Magdalene Lim (email available below). General contact details of provider: https://edirc.repec.org/data/dentusg.html .

    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.