RESEARCH ON THE IMPACT AND MECHANISM OF DIGITAL TRANSFORMATION ON ENTERPRISE BUSINESS PERFORMANCE

If you look at panel data from 2007 to 2023 for A-share companies in Shanghai and Shenzhen, you can see how digital transformation has affected their business performance and how it works. The results show that digital transformation has a highly significant positive effect on the improvement of enterprise business performance. There are three ways to do a robustness test: changing the statistical quality of the dependent variable, adding to the control variable, or leaving out some of the sample. The robustness test results indicate that digital transformation has a significant positive impact on the improvement of business performance. It is found that digital transformation improves enterprise service level, increases return on investment, and improves management self-interested behavior, thus contributing to enterprise business performance through mechanism analysis. The management's self-interested behavior and return on investment play a chain mediating role between digital transformation and enterprise business performance. This research holds significant reference value in promoting the digital transformation and sustainable development of Chinese enterprises.