How Can Digital Transformation Mitigate the Risk of a Stock Price Crash for Companies?

Leyi Xu

doi:10.47297/wspdecWSP2515-797313.20261004

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How Can Digital Transformation Mitigate the Risk of a Stock Price Crash for Companies?

Volume 10, Issue 4

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How Can Digital Transformation Mitigate the Risk of a Stock Price Crash for Companies?
How Can Digital Transformation Mitigate the Risk of a Stock Price Crash for Companies?
School of Economics and Management, Yantai University, Department of Investment Studies, Yantai, Shandong, 264005, China
Vol. 10, Issue 4, Pages: 70-75(2026)
Online First：29 July 2026，

Published：30 April 2026
DOI：10.47297/wspdecWSP2515-797313.20261004
Accepted：

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Xu Leyi.How Can Digital Transformation Mitigate the Risk of a Stock Price Crash for Companies?[J].Development Economics of China,2026,10(04):70-75.
DOI：

Xu Leyi.How Can Digital Transformation Mitigate the Risk of a Stock Price Crash for Companies?[J].Development Economics of China,2026,10(04):70-75. DOI： 10.47297/wspdecWSP2515-797313.20261004.

摘要

Abstract

Digital transformation is broadly acknowledged as a key catalyst for corporate performance

yet its role in shaping stock price crash susceptibility remains ambiguous. Leveraging panel data from Chinese A-share firms (2007–2023) and a two-way fixed-effects framework

we find it significantly curtails crash risk—proxied by NCSKEW and DUVOL. The mechanism operates through enhanced information transparency and more efficient resource deployment. This research addresses a notable gap and offers concrete guidance to firms and regulators aiming to bolster market stability.

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Keywords

references

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