Name
Corporate Digitalisation and Stakeholder Non-compliance: A Pathway to Enhanced Accountability
Date & Time
Monday, July 6, 2026, 4:40 PM - 5:05 PM
Description
Purpose – Despite digitalisation’s growing role in strengthening internal monitoring, its impact on accountability, particularly stakeholder non-compliance, remains underexplored. Addressing this gap, this study investigates whether and how corporate digitalisation influences stakeholder non-compliance.
Design/methodology/approach – Using machine learning techniques, we extract digitalisation measures from 10-K filings of S&P 500 firms between 2010 and 2023. We employ multiple robustness checks, including difference-in-differences estimation, to validate the results.
Findings – Corporate digitalisation significantly reduces stakeholder non-compliance, including environmental and social non-compliance, by enhancing operational efficiency and curbing managerial opportunism, thereby reinforcing corporate responsibility and sustainability. These effects are stronger for technology-oriented firms and those with weaker external monitoring, suggesting digitalisation substitutes for traditional governance mechanisms.
Practical implications – The study documents that reduced stakeholder non-compliance resulting from digitalisation translates into broader financial benefits, including lower cost of debt and capital, reduced reliance on external financing, lower audit fees, and enhanced access to trade credit. Collectively, the evidence positions corporate digitalisation as a strategic enabler of financial transparency, accountability, and stakeholder trust.
Originality/value – This study is the first to examine how corporate digitalisation mitigates stakeholder non-compliance, extending the accounting and accountability literature to the digital era. Using a novel machine-learning-based measure of digitalisation from 10-K filings and patent data, we provide large-sample evidence on its impact on compliance outcomes and related financial benefits. Our findings position digitalisation as a strategic governance tool, particularly in weak monitoring environments, offering new insights for regulators, practitioners, and policymakers.
Speakers
Keywords
Corporate digitalisation; stakeholder non-compliance; accountability; firm efficiency, managerial opportunism
Theme
ACCOUNTING AND TECHNOLOGY
Author 1
Md Harun Ur Rashid
Author 2
Rashid Zaman
Author 3
Deepa BANNIGIDADMATH
Author 4
Soheil Kazemian
Author 5
Alex Zhang