Digital transformation and the herd behavior of corporate investment

Digital technology is a widespread integration of the benefits of digital transformation into all aspects of modern company operations. This paper examines how digital transformation affects firms' investment herd behavior. Based on listed firms from 2012 to 2022, this paper adopts a two-fixed model to explore the effects and underlying mechanisms. The findings indicate that digital transformation can effectively inhibit corporate investment herd behavior, and the impact is achieved by enhancing internal information disclosure and external information intermediation. The findings offer empirical proof of how to effectively regulate the herd behavior observed in financial markets in the digital era.