Power allocation optimization plays an important role in driving the efficiency of group organization operations, and whether digital transformation has an impact on the power allocation of corporate groups is a new issue worth attention. Theoretically, digital transformation may affect the power allocation of corporate groups in the following ways: First, digital transformation spawns new business models that require firms to respond more quickly to changes in market demand. Second, digital transformation enhances the professionalism of employment and promotes the upgrading of human capital structure. Third, digital transformation improves information transparency and reduces agency costs between parent and subsidiary companies. Taking China’s A-share listed companies from 2010 to 2020 as the sample, this paper investigates whether and how digital transformation affects the power allocation of corporate groups. The results show that digital transformation facilitates the management decentralization within corporate groups, and this decentralization behavior is more pronounced for firms with greater performance pressure, fiercer industry competition, and more optimistic executives. Mechanism testing shows that digital transformation affects the management decentralization within corporate groups in three ways: timely response to market demand, promotion of human capital structure upgrading, and reduction of agency costs. Moreover, decentralized management under digital transformation helps to improve business operation stability. The possible contributions of this paper are that: (1) It constructs indicators for management decentralization and conducts empirical research, extending the application of power allocation in corporate groups in accounting empirical research. (2) It incorporates digital transformation into the research framework of the power allocation of corporate groups, enriching the research on corporate governance in the era of the digital economy. (3) It provides new ideas for further discussions on the related issues of “power allocation optimization of corporate groups”.