 Differences make a difference: Board diversity and enterprise digital transformationHuaining Xu, Shasha Liu and Gaowen Kong Economic Analysis and Policy, 2025, vol. 86, issue C, 545-558 Abstract: Our study examines the influence of board diversity on enterprise digital transformation and its underlying mechanisms. We find that board diversity significantly facilitates digital transformation, a finding that remains consistent across various tests. Notably, this positive effect is primarily attributed to the easing of financing constraints and a heightened tolerance for risk. Furthermore, the study indicates that in scenarios characterized by poor debt repayment capacity, low credit rating, excessive debt caution, pronounced underinvestment, and non-state ownership, the role of board diversity in advancing digital transformation becomes more pronounced. Additionally, our research highlights that the impact of occupational diversity is more significant than that of social diversity, and the influence of diversity among executive directors is more substantial than that among non-executive directors in driving digital transformation. With the enhancement of board diversity and the advancement of digital transformation, enterprise value has been significantly improved. Keywords: Board diversity; Digital transformation; Financing constraints; Risk taking (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:86:y:2025:i:c:p:545-558 DOI: 10.1016/j.eap.2025.03.046 Access Statistics for this article Economic Analysis and Policy is currently edited by Clevo Wilson More articles in Economic Analysis and Policy from Elsevier |
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