Digital transformation and bond credit spread

Huijie Cui, Xue Zhou and Yonggen Luo

Finance Research Letters, 2023, vol. 58, issue PC

Abstract: We investigate the impact of enterprise digital transformation on bond credit spread based on Chinese A-share listed companies. The empirical results show that digital transformation has a significant impact on reducing credit spread and the negative relation is robust to a number of robustness checks. Subgroup analyses suggest that the reduction effect is more pronounced in state-owned enterprises, non-duality firms, firms with a higher proportion of independent directors, and firms located in high-marketization areas or eastern regions. Increasing total factor productivity, reducing information asymmetry, and enhancing internal control are three possible mechanisms by which digital transformation helps reduce credit spread.

Keywords: Digital transformation; Bond credit spread; Total factor productivity; Information quality; Internal control (search for similar items in EconPapers)
JEL-codes: G30 O30 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pc:s154461232300925x

DOI: 10.1016/j.frl.2023.104553

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