Research on the Digital Transformation and Evaluation of Securities Firms: An Empirical Study in Southern China

Dixie L. Leavitt School of Business, Southern Utah University, 351 W University Blvd. Cedar City Utah, 84720, the United States

^* Corresponding author: kunyuli@suumail.net

Abstract

Digital transformation has emerged as a strategic imperative for Chinese securities industry. However, the degree of digital transformation among domestic securities firms lags behind other financial sectors, partly due to the absence of a systematic evaluation framework to guide and assess the transformation. This study constructs a tri-dimensional analytical system encompassing digital strategy, digital business, and digital governance. Utilizing Principal Component Analysis (PCA) to objectively weight transformation indicators, we quantify the digital transformation of securities firms in Southern China. The study reveals that while most securities companies have recognized the importance of digital transformation and formulated corresponding strategies, their implementation and post-transformation governance remain exploratory, impeding industry-wide progress. As the digital transformation of the securities industry advances, the evaluation framework requires continuous refinement. This research provides decision-making references for regulatory bodies, industry associations, and financial institutions, offering a foundation for securities companies to enhance digital transformation practices and governance systems.