The impact of the integration of the digital economy and the real economy on the risk of stock price collapse

We use data from Chinese A-share listed companies from 2011 to 2021 to examine the impact of the integration of the digital economy and the real economy on the risk of stock price collapse. We find the integration of the digital economy and the real economy exacerbates the risk of stock price collapse for companies. The Findings from the internal mechanism analysis indicate that the convergence of the digital economy mitigates the risk of stock price collapse by promoting the level of financial technology. Conversely, the efficiency of capital market pricing is lowered which increases the risk of stock price collapse. Heterogeneity analysis reveals the exacerbating effect of the integration of the digital economy and the real economy on the risk of stock price collapse is significant when there is a higher proportion of institutional investors, dispersed ownership, or in larger-sized companies.