Firm digital transformation and corporate performance: The moderating effect of organizational capital

We use textual analysis to measure corporate digital transformation by the frequency of digital terms in the firm 10-K report. We then show that this digital transformation score (DGS) is associated with corporate value. Importantly, we show that organizational capital, the quality of corporate governance, information quality, and firm IPO age play non-negligible roles in shaping the value creation of corporate digital transformation. Our fresh evidence indicates that firms need to enhance their organizational capital, corporate governance, and firm information quality to benefit from their digital transformation efforts.