CAN DIGITAL TRANSFORMATION ENHANCE INFORMATION DISCLOSURE QUALITY?

Amid the rapid development of the artificial intelligence era, digital technology has become deeply embedded in corporate development, and the implementation of digital transformation has emerged as a primary driver for the transformation and upgrading of the real economy. This paper examines a sample of Shanghai and Shenzhen A-share listed companies from 2010 to 2021. By quantifying the degree of corporate digital transformation through text mining and constructing a moderated mediation model, this study analyzes the underlying mechanism linking digital transformation, internal control, and information disclosure quality. It further explores the moderating role of the marketization process. The findings indicate that corporate digital transformation significantly enhances information disclosure quality, with this effect being more pronounced in state-owned enterprises (SOEs), high-tech firms, and industries with high market concentration. The mechanism analysis reveals that internal control plays a partial mediating role in the relationship between digital transformation and information disclosure quality. Furthermore, the marketization process moderates both the direct effect and the mediation effect. A higher degree of marketization strengthens the positive impact of digital transformation on disclosure quality. This moderation of the mediation effect is primarily concentrated on the first stage of the path, amplifying the positive influence of digital transformation on internal control. These conclusions enrich the literature on the economic consequences of digital transformation and the determinants of information disclosure quality, and they hold significant practical implications for firms implementing digital transformation and innovating their business models.