THE JOINT EFFECTS OF CEOs’ CHARACTERISTICS AND FIRM DIGITALIZATION ON ASSET PRICING: EVIDENCE FROM THE CHINESE CAPITAL MARKET
Article Sidebar
Main Article Content
บทคัดย่อ
This research article aims to: 1) To examine whether firm digital transformation is associated with subsequent stock returns in the Chinese A-share market. 2) To investigate the direct effects of CEO age, gender, overseas experience, hometown identity, and CEO duality on stock returns. 3) To analyze the moderating effects of CEO characteristics on the relationship between firm digital transformation and stock returns. This study conducts a quantitative empirical research study collecting panel data from approximately 2,500 non-financial listed firms in the Chinese A-share market over the period 2008–2023, yielding 17,820 firm-year observations; and analyzes the data using panel regression models and Fama–MacBeth cross-sectional regressions to test both direct and moderating effects.
The research results found that: 1) Firm digital transformation is positively and significantly associated with subsequent stock returns, indicating the existence of a digital premium in the capital market. 2) CEO characteristics exhibit heterogeneous direct effects on stock returns, with CEO age negatively related to future returns and overseas experience positively associated with stock performance, while gender shows marginal significance and hometown identity and CEO duality do not present robust independent effects. 3) CEO characteristics significantly moderate the relationship between firm digital transformation and stock returns, as the digital premium is stronger under overseas-experienced and dual CEOs but weaker under older and hometown CEOs.
Article Details
เอกสารอ้างอิง
Feng, P., Pang, J., & Jeon, S. (2024). Does Digital Transformation Alleviate Stock Price Delays? Evidence from China. Asia-Pacific Journal of Financial Studies, 53(5), 532–554.
He, J., & Su, H. (2022). Digital Transformation and Green Innovation of Chinese Firms: The Moderating Role of Regulatory Pressure and International Opportunities. International Journal of Environmental Research and Public Health, 19(20), 13321
Li, W., Li, T., Jiang, D., & Zhang, X. (2024). Bridging the information gap: How digitalization shapes stock price informativeness. Journal of Financial Stability, 71, 101217.
Liu, H., Zhang, X., & He, Y. (2025). Digital Transformation and ESG Performance—Empirical Evidence from Chinese Listed Companies. Sustainability, 17(13), 6165
Liu, X., Zhong, W., & Chen, J. (2023). Stay home, stay safe: CEO hometown identity and default risk. Finance Research Letters, 57, 104191.
Twongirwe, C., & Bakundana, M. (2025). CEO age and stock price synchronicity. International Review of Financial Analysis, 103, 104195.
Xu, Z., & Hou, J. (2024). CEO overseas experience, dynamic capabilities and corporate digital transformation: An imprinting theory perspective. Humanities and Social Sciences Communications, 11(1), 743.
Zhang, H., Han, B., Li, X., & Liu, Q. (2024). Does the stock market reward firm’s digitalization: Evidence from China during the COVID-19 pandemic. SSRN Working Paper No. 4701377.
Zhang, Y., & Dong, L. (2023). Foreign experience of CEO and corporate social responsibility: Evidence from China. Frontiers in Environmental Science, 11, 1103394.
