Industry 4.0 Technologies: Empirical Impacts and Decision Framework
基于2013-2018年中国上市公司563个投资公告，用事件研究法发现工业4.0投资带来正面股市反应和财务改善，并构建两期模型帮助企业在短期中断与长期收益间权衡。
Industry 4.0 technologies have been regarded as powerful means to enhance a firm's competitiveness in the Internet of Things environment. However, implementing Industry 4.0 technologies calls for considerable capital expenditure and might interrupt normal production in the short term. This study conducts an empirical analysis of the impact of investing in Industry 4.0 technologies based on a sample of 563 investment announcements of publicly listed firms on the Shanghai Stock Exchange and Shenzhen Stock Exchange from 2013 to 2018. Using the event study method, we find empirical evidence that these investment announcements lead to positive stock market reactions and improved financial performance. In particular, we empirically evaluate firms’ short‐ and long‐term stock prices and financial measures by considering the type of investments (i.e., digital or physical investments), whether the investment is product‐oriented or manufacturing process‐oriented, and whether the technologies are applied within a firm or across the supply chain. Our empirical findings hold true when a firm's strategic decision is accounted for and remain robust through various tests. Furthermore, we propose a decision framework for firms to balance the tradeoff between short‐term disruption and long‐term benefits resulting from an investment in Industry 4.0. Specifically, we develop a two‐period model and investigate when and to what extent a firm should invest in Industry 4.0 technologies. Empirical and modeling analyses provide managerial insights for firms that grapple with the net benefit of investment in Industry 4.0.