The Dual Effects of Digital Rhetoric on Firm Performance in the Electronic Equipment Manufacturing Industry: Evidence from ROA and Sales Growth Models

Digital transformation has expanded from actual investment to the way firms describe their digital plans in annual reports. This study examines whether digital rhetoric affects firm performance and whether its effects change over time. The sample contains 50 A-share firms and 150 firm-year observations from China's C39 industry between 2023 and 2025. Digital rhetoric is measured through selected keywords in the Management Discussion and Analysis section. Ordinary least squares models with standard errors clustered at the firm level are used to examine ROA and sales growth. The results show that digital rhetoric is positively and significantly related to ROA. Its relation with sales growth is positive but not statistically significant, and the effect becomes weaker in later years. The findings suggest that digital rhetoric may support current profitability without producing immediate sales expansion. This study adds a disclosure-based perspective to research on digital transformation and distinguishes substantive digital change from symbolic expression.