Digital Transformation and Firm Value in Chinese A-Share Listed SMEs: Evidence and Mechanisms
Keywords:
Digital Transformation, Green Innovation, SME ValueAbstract
Amid the dual trends of digital economy expansion and green development, understanding how digital transformation enhances the value of small and medium-sized enterprises (SMEs) is of growing theoretical and practical importance. Drawing on the resource-based view and dynamic capability theory, This study develops an analytical framework linking digital transformation, green innovation, and firm value. Using panel data from Chinese A-share listed SMEs between 2013 and 2024, we construct a firm-level digital transformation index through text analysis and empirically examine its value-enhancing effects. Results show that digital transformation significantly improves SME value, and the findings remain robust across multiple tests. Mechanism analysis indicates that green innovation plays a partial mediating role, suggesting that digital transformation promotes firm value by stimulating green innovation inputs and outputs. Heterogeneity analysis further reveals stronger effects in non-state-owned enterprises and firms located in central China. These findings clarify the mechanism through which digital transformation enhances SME value from a green innovation perspective.
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Copyright (c) 2025 HU TAO
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Published by University Tun Abdul Razak (UNIRAZAK)
