The unique ownership structure and governance mechanisms of state-owned enterprises (SOEs) make executive perquisite consumption, which stems from the principal-agent problem, a stubborn issue in SOE governance. Digital transformation offers a novel approach to addressing this challenge. Based on the sample data from A-share listed SOEs from 2007 to 2019, this paper finds that digital transformation significantly curbs executive perquisite consumption in SOEs. This inhibition effect is primarily achieved through three mechanisms: Digital transformation enhances information transparency; it optimizes internal control mechanisms and management processes; it significantly increases external monitoring efficiency. Heterogeneity analysis based on SOE classification characteristics reveals that this inhibition effect is more pronounced in local SOEs, SOEs in specific industries, and SOEs with lower non-state shareholder participation in governance, demonstrating its important complementary role to existing state-owned asset supervision systems.

This paper has the following contributions: First, it expands the research on factors influencing executive perquisite consumption in SOEs. Second, it reveals the intrinsic pathways through which digital transformation affects executive perquisite consumption. Third, it enriches the study of economic consequences of SOE digital transformation. Fourth, it provides differentiated guidance for digital strategies across various types of SOEs.

In conclusion, this paper offers new perspectives and empirical evidence for understanding and improving executive perquisite consumption issues in SOEs from the angle of digital transformation. The findings not only enrich relevant theories, but also provide an empirical basis for policy formulation, offering valuable references for leveraging digital empowerment to promote the modernization of SOE governance systems and capabilities. Future research could further explore the impact of digital transformation on other aspects of SOE governance and how to better utilize digital technologies to enhance overall SOE governance levels.