New intelligent empowerment for digital transformation

ArXiv ID: 2406.18440 “View on arXiv”

Authors: Unknown

Abstract

This study proposes an innovative evaluation method based on large language models (LLMs) specifically designed to measure the digital transformation (DT) process of enterprises. By analyzing the annual reports of 4407 companies listed on the New York Stock Exchange and Nasdaq from 2005 to 2022, a comprehensive set of DT indicators was constructed. The findings revealed that DT significantly improves a company’s financial performance, however, different digital technologies exhibit varying effects on financial performance. Specifically, blockchain technology has a relatively limited positive impact on financial performance. In addition, this study further discovered that DT can promote the growth of financial performance by enhancing operational efficiency and reducing costs. This study provides a novel DT evaluation tool for the academic community, while also expanding the application scope of generative artificial intelligence technology in economic research.

Keywords: Digital Transformation (DT), Blockchain, Financial Performance, Large Language Models (LLM), Text Analysis

Complexity vs Empirical Score

• Math Complexity: 2.5/10
• Empirical Rigor: 7.0/10
• Quadrant: Street Traders
• Why: The paper applies large language models to analyze textual data (annual reports) and uses statistical analysis on a large dataset, indicating moderate empirical rigor, but involves minimal advanced mathematics beyond basic statistical metrics.

  flowchart TD
    A["Research Goal"] --> B["Data Collection"]
    B --> C["LLM Text Analysis"]
    C --> D["Construct DT Indicators"]
    D --> E["Statistical Analysis"]
    E --> F["Key Findings"]
    
    subgraph A ["Research Goal"]
        A1["Measure Enterprise Digital Transformation & Financial Performance"]
    end
    
    subgraph B ["Data & Methodology"]
        B1["4407 Companies NYSE/Nasdaq 2005-2022"]
        B2["Annual Reports"]
    end
    
    subgraph C ["Computational Process"]
        C1["Large Language Models LLM"]
        C2["Text Analysis"]
    end
    
    subgraph D ["Outcomes"]
        D1["Comprehensive DT Indicators"]
        D2["Improved Financial Performance"]
        D3["Operational Efficiency & Cost Reduction"]
        D4["Blockchain's Limited Impact"]
    end