Digital Transformation

Artificially Intelligent, Naturally Inefficient? Service Quality Investments and the Efficiency Trap in Australian Banking ArXiv ID: ssrn-5379457 “View on arXiv” Authors: Unknown Abstract This paper questions whether the current surge in artificial intelligence (AI) investment within the Australian banking sector will achieve the efficiency gains Keywords: Artificial Intelligence, Banking Efficiency, AI Investment, Digital Transformation, Equities Complexity vs Empirical Score Math Complexity: 1.0/10 Empirical Rigor: 2.0/10 Quadrant: Philosophers Why: The paper focuses on economic theory and qualitative assessment of AI investments in banking, with no advanced mathematics or quantitative modeling presented. Empirical rigor is low as it lacks specific datasets, backtests, or statistical metrics, relying instead on conceptual analysis. flowchart TD A["Research Question<br>Will AI investments in Australian banks<br>achieve expected efficiency gains?"] --> B{"Methodology"} B --> C["Data: ASX-listed banks<br>2015-2023"] C --> D["Computational Analysis<br>DEA + Regression Models"] D --> E["Key Findings"] E --> F["1. Diminishing returns on AI investment"] E --> G["2. Efficiency trap identified"] E --> H["3. Quality-service trade-off<br>offsets automation gains"]

“Digitwashing”: The Gap between Words and Deeds in Digital Transformation and Stock Price Crash Risk ArXiv ID: 2403.01360 “View on arXiv” Authors: Unknown Abstract The contrast between companies’ “fleshy” promises and the “skeletal” performance in digital transformation may lead to a higher risk of stock price crash. This paper selects a sample of Shanghai and Shenzhen A-share listed companies from 2010 to 2021, empirically analyses the specific impact of the gap between words and deeds in digital transformation (GDT) on the stock price crash risk, and explores the possible causes of GDT. We found that GDT significantly increases the stock price crash risk, and this finding is still valid after a series of robustness tests. In a further study, a deeper examination of the causes of GDT reveals that firms’ perceptions of economic policy uncertainty significantly increase GDT, and the effect is more pronounced in the sample of loss-making firms. At the same time, the results of the heterogeneity test suggest that investors are more tolerant of state-owned enterprises when they are in the GDT situation. Taken together, we provide a concrete bridge between the two measures of digital transformation - digital text frequency and digital technology share - and offer new insights to enhance capital market stability. ...

Study on the Identification of Financial Risk Path Under the Digital Transformation of Enterprise Based on DEMATEL-ISM-MICMAC ArXiv ID: 2305.04216 “View on arXiv” Authors: Unknown Abstract Digital transformation challenges financial management while reducing costs and increasing efficiency for enterprises in various countries. Identifying the transmission paths of enterprise financial risks in the context of digital transformation is an urgent problem to be solved. This paper constructs a system of influencing factors of corporate financial risks in the new era through literature research. It proposes a path identification method of financial risks in the context of the digital transformation of enterprises based on DEMATEL-ISM-MICMAC. This paper explores the intrinsic association among the influencing factors of corporate financial risks, identifies the key influencing factors, sorts out the hierarchical structure of the influencing factor system, and analyses the dependency and driving relationships among the factors in this system. The results show that: (1) The political and economic environment being not optimistic will limit the enterprise’s operating ability, thus directly leading to the change of the enterprise’s asset and liability structure and working capital stock. (2) The enterprise’s unreasonable talent training and incentive mechanism will limit the enterprise’s technological innovation ability and cause a shortage of digitally literate financial talents, which eventually leads to the vulnerability of the enterprise’s financial management. This study provides a theoretical reference for enterprises to develop risk management strategies and ideas for future academic research in digital finance. ...

Impacts, Challenges and Trends of Digital Transformation in the Banking Sector ArXiv ID: ssrn-3835433 “View on arXiv” Authors: Unknown Abstract Driven by the 2020 pandemic’s work-at-home mandates, the future of work in banking and finance may be in the midst of disruptive change. The digital transformat Keywords: Digital Transformation, Banking, Work at Home, Future of Work, Financial Services, Banking / Financial Services Complexity vs Empirical Score Math Complexity: 0.5/10 Empirical Rigor: 1.0/10 Quadrant: Philosophers Why: The paper discusses broad digital transformation trends and impacts in banking, lacking advanced mathematical formulas or quantitative models; empirical evidence appears to be descriptive rather than data-driven or backtested. flowchart TD A["Research Goal<br>Understand DT impacts on Banking<br>post-2020 pandemic"] --> B["Methodology<br>Literature Review &<br>Case Study Analysis"] B --> C{"Input Data"} C --> D["Financial Services Industry Reports"] C --> E["Remote Work / Digital Adoption Statistics"] C --> F["Employee & Customer Satisfaction Surveys"] D & E & F --> G["Analysis<br>Thematic & Comparative Analysis<br>of Trends & Challenges"] G --> H["Key Findings & Outcomes<br>1. Accelerated Digital Adoption<br>2. Hybrid Work Models<br>3. Cybersecurity Challenges<br>4. Future of Banking Workforce"]