Governance, risk and compliance (GRC) in digital transformation: Investor views

Companies are embracing digital transformation to enhance their competitiveness. Existing studies show that it is important for companies to manage the governance, risk, and compliance (GRC) aspects of their digital transformation initiatives. While companies are increasingly understanding the impor...

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Bibliographic Details
Main Authors: GOH, Clarence, KUSNADI, Yuanto, PAN, Gary, SEOW, Poh Sun
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2022
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Online Access:https://ink.library.smu.edu.sg/soa_research/1980
https://ink.library.smu.edu.sg/context/soa_research/article/3007/viewcontent/Paper_Post_Print__7_.pdf
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Institution: Singapore Management University
Language: English
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Summary:Companies are embracing digital transformation to enhance their competitiveness. Existing studies show that it is important for companies to manage the governance, risk, and compliance (GRC) aspects of their digital transformation initiatives. While companies are increasingly understanding the importance of the role of GRC in digital transformation, it is unclear from the investors’ views. Thus, this study examines whether investors are placing importance on the role of GRC in digital transformation for their investment decisions. The results show that investors care about the GRC aspects of digital transformation initiatives undertaken by companies. The findings of this study are consistent with the view that companies need to manage the GRC aspects of their digital transformation initiatives so that they can attract investors to invest in their companies. This study contributes to the extant literature as investors are important stakeholders of companies.