Corporate digital transformation and accounting comparability: Evidence from China

Using a large sample of Chinese listed firms from 2012 to 2022, this study investigates the relationship between corporate digital transformation and accounting comparability. The baseline results show that the degree of corporate digital transformation is positively associated with accounting comparability, indicating that the former improves the latter. Further, channel analyses show that corporate digital transformation improves accounting comparability by increasing the accuracy of financial reporting, alleviating agency conflicts, and enhancing the quality of internal control. Finally, cross-sectional analyses show that the positive effect of corporate digital transformation on accounting comparability is stronger in firms with more executives with financial backgrounds, in state-owned enterprises, and in high-tech firms. Overall, the study’s findings suggest the corporate digital transformation improves accounting comparability in an emerging market with relatively low accounting information quality.