This study examines the impact of the readability of corporate digital transformation disclosures on asset mispricing. Digital transformation for enterprises represents a profound process of organizational change, significantly affecting internal value enhancement and external stakeholders. However, the issue of information asymmetry during the digital transformation process attracts great attention. Based on signaling theory, this paper constructs a readability index for corporate disclosures on digital transformation through text analysis and empirically examines its subsequent impact on asset mispricing. Our findings suggest that highly readable disclosure on digital transformation reduces information asymmetry, thereby alleviating asset mispricing significantly, with media attention and technological intensity playing roles of moderators in the signaling environment. This research provides theoretical support and practical guidance for corporate digital transformation and disclosure strategies, contributing to investor decision-making and fostering the healthy development of capital markets.
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