Dose digital transformation contribute to improving financing efficiency? Evidence and implications for energy enterprises in China

Ruchuan Zhang, Weiyan Gao, Shanshan Chen, Li Zhou and Aijun Li

Energy, 2024, vol. 300, issue C

Abstract: The high penetration of digitalization has emerged as a crucial driving force in enhancing financing efficiency across global enterprises. However, few studies have explored the potential effects of digital transformation on enterprises' financing efficiency, wherein the financing system is composed of fund procurement and application stages. Under such background, this study constructs a novel network DEA model with dominance probability and adjusted utility to analyze the multiple-dimensional performance of the financing system. Then an empirical econometric model is developed from the theoretical analysis and applied to Chinese energy enterprises for the period 2015-2021. The main findings are summarized as follows. First, our research demonstrates that digital transformation can significantly increase financing efficiency, with fund procurement identified as the lagging stage to efficiency improvement. Second, when considering the heterogeneous analysis, digital transformation is particularly effective in alleviating financing constraints and enhancing operating performance for clean energy enterprises. Finally, with regard to the mechanism's explorations, digital transformation increases enterprises' financing efficiency by reducing the ownership concentration and management expense rate. These findings provide an empirical foundation for the advancement of digital transformation, and also hold significant implications for narrowing financing efficiency gaps across energy enterprises.

Keywords: Digital transformation; Financing efficiency; Clean energy; Data envelopment analysis; Energy enterprises (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:300:y:2024:i:c:s0360544224010442

DOI: 10.1016/j.energy.2024.131271

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