Research on the impact of corporate digital transformation on investment efficiency

Digital technologies are increasingly reshaping firms' operational processes, information management, and resource allocation practices. As digital transformation becomes more deeply embedded in business activities, its influence on corporate investment decisions has attracted growing scholarly attention. Drawing on data from Chinese A-share listed companies during 2013-2024, this study investigates the relationship between digital transformation and investment efficiency. The results show that firms with a higher level of digital transformation exhibit significantly lower inefficient investment and consequently higher investment efficiency. The estimated effect remains robust after a series of additional analyses addressing potential endogeneity and model specification issues. Further examination suggests that the positive effect of digital transformation is partly attributable to the alleviation of financing constraints and the reduction of agency costs. By improving information flows and strengthening governance mechanisms, digital transformation contributes to more efficient capital allocation within firms. The study extends existing knowledge on the economic outcomes of digital transformation and offers evidence relevant to both corporate investment management and digital economy policy design.