Banking competition and digital transformation

Zonghang Bai, Yuanhao Ban and Haifeng Hu

Finance Research Letters, 2024, vol. 61, issue C

Abstract: This paper explores the effects and influence mechanism of banking competition on digital transformation in Chinese listed companies, an area that has not been explored in the existing literature. Using A-share listed companies in China from 2008 to 2019 as a research sample. This paper finds that banking competition significantly promotes enterprise digital transformation. And this promoting effect is more obvious in the regions with relatively low proportion of state-owned banks and entry of non-local banks. Mechanism analysis shows that banking competition boosts enterprise digital transformation by alleviating financing constraints, reducing operating risks and increasing R&D investment.

Keywords: Banking competition; Digital transformation; Financing constraints; Operational risk; Research input (search for similar items in EconPapers)
JEL-codes: D21 G28 O16 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:61:y:2024:i:c:s1544612324000989

DOI: 10.1016/j.frl.2024.105068

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