The Impact of Digital Transformation on Corporate Governance: Spillover Effects of Internal Governance

Abstract

With the rapid development of the digital economy, digital transformation has shifted from being an “option” for enterprises to a “necessity for survival”. At present, research has found that digital transformation of corporate governance can help reduce costs and increase efficiency, optimize business operations, and reduce risks. However, these studies mostly focus on the impact of digital transformation on internal and external governance, and there is still a research gap in studying the impact of digital transformation on corporate governance from the perspective of the connection between internal and external governance. Therefore, this paper will take Kweichow Moutai Co., Ltd. as an example for case analysis. Research has found that the digital transformation of internal governance can affect external governance through multiple channels, either directly or indirectly. Therefore, companies should pay attention to the spillover effects of internal governance during the digital transformation process to avoid unnecessary negative impacts on external governance.