The impact of enterprise digital transformation on management tone manipulation and its ‘double-edged sword’ effect

Xuanming Zhang; Ze Dong

doi:10.54517/bmtp2994

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Asia Pacific Academy of Science Pte. Ltd. (APACSCI) specializes in international journal publishing. APACSCI adopts the open access publishing model and provides an important communication bridge for academic groups whose interest fields include engineering, technology, medicine, computer, mathematics, agriculture and forestry, and environment.

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The impact of enterprise digital transformation on management tone manipulation and its ‘double-edged sword’ effect

Xuanming Zhang, Ze Dong

Article ID: 2994
Vol 2, Issue 2, 2025

DOI: https://doi.org/10.54517/bmtp2994

Received: 12 October 2024; Accepted: 26 December 2024; Available online: 30 April 2025; Issue release: 30 June 2025

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Abstract

Does digital transformation, as an important means for firms to gain market competitiveness, reduce the incentives for management tone manipulation? This paper examines the effect of corporate digital transformation on management tone manipulation and its mechanism from the perspectives of psychology and behavioral finance. The results show that the relationship between digital transformation and tone of voice manipulation is inverted ‘U’ shape, with digital transformation increasing the degree of tone of voice manipulation in the early stage and decreasing it in the later stage. The mediation test concludes that digital transformation mainly affects management tone manipulation by influencing the level of information asymmetry and financing constraints. In addition, the effect of digital transformation on management tone manipulation is more pronounced in firms with more myopic management. This paper examines the internal logic of the impact of digital transformation on management tone manipulation from the perspective of management, reveals the ‘double-edged sword’ effect of digital transformation on management tone manipulation, and enriches the literature on digital transformation and management tone manipulation.

Keywords

management tone manipulation; information asymmetry; management short-sightedness

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