Abstract: How the digital development of enterprises affects the decision-making behavior of managers is a hot issue in the field of corporate governance at this stage. Based on the data from A-share listed companies from 2009 to 2022, this study empirically examines the impact and mechanism of digital transformation on managers’ irrational decision-making by using myopia as a starting point. The study finds that the digital transformation can significantly inhibit the short-sighted tendency of managers’ decision-making, having a governance effect. The mechanism analysis reveals that digital transformation can produce a visual incentive effect and a governance synergy effect, which can restrain managerial myopia. The heterogeneity analysis shows that the differences in the governance environment, resource environment, and business environment of enterprises will affect the effect of digital transformation in alleviating the short-sightedness of managers. In addition, the governance effect of digital transformation on the short-sightedness of managers can bring about the improvement of the sustainable development ability of enterprises and the expansion of capital expenditure, with long-term value enhancement effects. To this end, enterprises should fully grasp the governance dividends brought by digital transformation, systematically promote digital transformation work, so as to improve the quality of managers’ decision-making and achieve the long-term sustainable development of the enterprises.

Key words: digital transformation, managers’ irrational decision-making, myopia, visual field incentive effect, governance synergy effect