Digital economy, digital-real integration, and high-quality development of firms

The digital economy (DE) is a significant factor in accelerating the high-quality development of firms (HQDF). Using data from Chinese A-share listed companies in Shanghai and Shenzhen from 2012 to 2023, this study explores the impact and mechanism of DE on HQDF. Findings indicate that DE significantly promotes HQDF through three key implementation mechanisms rooted in digital-real integration: technological breakthroughs, factor reallocation, and industrial transformation. Compared with the equity dimension, the DE exerts a stronger impact on the efficiency and sustainability dimensions of HQDF. Heterogeneity analysis shows that this effect is more pronounced in state-owned firms, non-high-tech firms, and regions with a high degree of digital-real integration (i.e., eastern and central China). Additionally, the positive role of DE in promoting HQDF is strengthened through improved intellectual property protection and digital infrastructure construction. This study enriches the literature on the coordinated development mechanism of DE and the real economy and provides new theoretical and empirical evidence for firms to achieve high-quality development in the current economic context.