Empirical Analysis of The Relationship Between Enterprise Digital Transformation and Enterprise Internal Control Quality

This paper takes a-share listed companies in Shanghai and Shenzhen stock markets from 2009 to 2019 as research samples, adopts text recognition method of big data to measure the degree of enterprise digital transformation, and studies its impact on the quality of enterprise internal control. The empirical results show that digital transformation significantly improves the quality of internal control, and this conclusion is still valid after the robust test. From the analysis of intermediary model, it can be seen that digital transformation can improve the quality of internal control by reducing agency cost. Based on heterogeneity analysis, this paper finds that digital transformation plays a more positive role in the improvement of internal quality control in non-state-owned enterprises, non-high-tech enterprises and enterprises in the decline period. The research conclusion of this paper is helpful to improve the understanding of enterprises' internal control quality research in digital transformation, and provide reference for the improvement of internal quality control of different enterprises.