Does enterprise digital transformation inhibit executives’ excess perks?—Evidence from China

This study uses data on Chinese non-financially listed companies to examine the relationship between enterprise digital transformation and excess perks. We discovered that excess perks may be greatly mitigated by enterprise digital transformation and that these conclusions remain robust following a series of endogeneity and robustness tests. The mechanism test finds that reducing information asymmetry within firms is a path for enterprise digital transformation to suppress excess perks. Further analysis reveals the negative relationship between digital transformation and excess perks is more significant in firms with duality and lower institutional investor shareholdings. This study provides a theoretical basis for promoting enterprise digital transformation and improving corporate governance mechanisms.