Corporate Group Decision-making Authority Allocation and Digital Transformation

Abstract

 With the continuous development of digital technology, the digital economy has become an important direction for economic development. At the micro-level, how to promote corporate digital transformation is a topic of common concern for academia and practitioners. This paper empirically tests the logical relationship between corporate group decision-making authority allocation and digital transformation using samples of A-share listed companies from 2010 to 2021. The research finds that decentralization within corporate groups significantly promotes digital transformation. Furthermore, for non-state-owned enterprises, high-tech enterprises, and companies operating in periods of monetary policy tightening or high industry competition, decentralization has a more significant effect on promoting digital transformation. The results are of great significance for corporate groups in determining appropriate decision-making authority allocation patterns to achieve digital transformation.