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Published Online: Apr 23, 2026

Technology committee, digital transformation and stock price sychronicity

Published Online: Apr 23, 2026
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Abstract:
Background: Digital transformation emerges as a strategic priority for firms due to the expansion of the digital economy. With the rapid development of digital tools, firms are leveraging digital technologies to increase operational efficiency and information transparency. Despite the growing interest in digital transformation, its effect on stock price co-movement remains largely unexplored in US market. Additionally, the role of technology committees is also not well understood. Objective: The study aims to investigate the theoretical rationale of how firm’s digital initiatives affect stock return co-movement by reducing information asymmetry and improving the information environment while also investigating the moderating role of governance board-level committees, such as technology committee in shaping this relationship. Methodology: Using the sample of 354 United States firms over the period 2013 to 2023, the study employs fixed effect to control the unobserved heterogeneity and the dynamic generalized method of momentum (GMM) to address potential endogeneity. Results: The findings of our research indicate that digital transformation significantly reduces return co-movement by reducing information asymmetry. However, the moderating role of technology committees did not strengthen the relationship between digital transformation and stock price synchronicity. Further, alternative measures and multiple sensitive checks robustly support the conclusion. Conclusion: Overall results of our study suggest that digital transformation significantly reduces stock price synchronicity. The board-level technology committee did not have a moderating effect, possibly because technology committees are scarce and not yet fully mature, or they may serve as a symbolic gesture. These findings highlight the importance of digital initiative and effective governance mechanisms in mature markets.
Keywords:
Pages:
355-375
JEL Classification:
O31, O33, G12, G14
How to cite:
Rani, A., Ghafoor, Z., Sheikh, R.U., Subhani, G. (2026). Technology committee, digital transformation and stock price sychronicity. Access to science, business, innovation in the digital economy, ACCESS Press, 7(2), 355-375 https://doi.org/10.46656/access.2026.7.2(6)
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