Research on the Impact of Digital-Real Technology Integration on Accounting Conservatism

Abstract

Digital-real technology integration has become an important component of the broader process of integrating the digital and real economies. By reshaping information processing and governance practices within firms, it may also influence the quality of accounting information. Using a sample of Shanghai and Shenzhen A-share listed companies from 2015 to 2024, this paper examines the relationship between digital-real technology integration and accounting conservatism. The results suggest that firms with a higher degree of digital-real technology integration tend to exhibit greater accounting conservatism. This finding remains robust after propensity score matching is applied. Further analysis indicates that the effect operates partly through increased innovation activity and reduced financing constraints. The relationship is also found to vary across different contexts, with stronger effects observed among firms located in eastern and western China, manufacturing enterprises, and high-tech firms. By linking digital-real technology integration to accounting conservatism, this study contributes to the literature on both digital transformation and accounting information quality. The findings also have implications for firms pursuing digital transformation strategies and for policymakers concerned with improving corporate information governance.