A Review of Research on Corporate Digital Transformation and Its Capital Market Effects

Abstract

Digital transformation, as a systematic project that deeply integrates digital technology with the real economy, is profoundly affecting the pricing efficiency and resource allocation function of capital markets. This paper systematically reviews the connotation, measurement methods, and transformation paths of corporate digital transformation, and then summarizes its capital market effects from three dimensions: stock price, cost of capital, and information disclosure quality. The study finds that digital transformation significantly influences stock price synchronicity, crash risk, and mispricing by reshaping the information environment and governance mechanisms. Through multiple pathways such as enhancing information transparency, strengthening internal control, and stimulating innovation momentum, digital transformation effectively reduces the costs of equity and debt financing. Moreover, digital transformation generally improves the quality of information disclosure, creating a positive "information governance dividend," which performs prominently in curbing illegal information disclosure and improving the accuracy of earnings forecasts.