Digital transformation and accounting information quality: The role of environmental uncertainty in the era of digital

Amid accelerating digitalization, we examine how digital transformation (DT) shapes accounting information quality (AIQ) through environmental uncertainty (EU), and how innovation investment (R&D) and industry competition (PMC) condition these effects. Using 19,925 firm-year observations for Chinese A-share firms (2013–2022), we construct a text-mined DT index with entropy weights, proxy AIQ via discretionary accruals from a modified Jones model, and measure EU with industry-adjusted rolling residual volatility. Firm and year fixed-effects regressions show: (1) DT significantly improves AIQ by reducing earnings management; (2) EU partially mediates the DT–AIQ link, as DT lowers EU and, in turn, curbs managerial opportunism; (3) R&D and PMC jointly exhibit non-linear moderation, forming an inverted U-shaped pattern whereby DT's uncertainty-reduction benefits peak under moderate competition and balanced innovation. Robustness checks with alternative measures, lags, and clustering support these results. Theoretically, we reveal a novel transmission channel—DT reduces EU to enhance AIQ—extending research on uncertainty and information production. Practically, firms should pursue holistic DT and disciplined R&D to strengthen reporting quality, while regulators enhance digital infrastructure and disclosure standards to improve market transparency and investor protection.