Abstract: Digital transformation (DT) has emerged as a key strategy for enhancing firm value and operational competitiveness in the context of China’s rapid digital policy development and unique institutional environment. However, whether digital investments translate into tangible performance often depends on corporate governance quality. This study uses a sample of Chinese A-share listed companies from 2018 to 2023 to explore the impact of digital transformation on firm value (Tobin’s Q) and examines the moderating effects of two governance mechanisms: institutional investors and board independence. The empirical results show that digital transformation significantly enhances firm value, and both institutional investors and board independence are positively correlated with firm value. Institutional investors exhibit a significant positive moderating effect on the relationship between digital transformation and firm value, indicating that external professional capital can amplify the value contribution of digital strategies. In contrast, the moderating effect of board independence is only marginally significant, possibly limited by the professional composition of boards and governance environment. This study contributes to the Asia-Pacific corporate governance and digital strategy literature by offering China-specific evidence on how institutional investors and board structures shape the value realization of digital transformation.
Keywords: digital transformation, corporate governance, firm value, institutional investors, board independence.
Title: An Empirical Study on Digital Transformation and Firm Value in China: The Moderating Role of Institutional Investors and Board Independence
Author: Li-Ling Yang
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 14, Issue 1, April 2026 - September 2026
Page No: 444-449
Research Publish Journals
Website: www.researchpublish.com
Published Date: 22-May-2026
