The path of digital transformation driving enterprise growth: The moderating role of financing constraints

Mou Li and Lei Wei

International Review of Financial Analysis, 2024, vol. 96, issue PA

Abstract: This study utilizes data from A-share listed companies of China between 2010 and 2021 to investigate the impact of digital transformation on corporate growth performance using a two-way fixed-effects model. We find that digital transformation has significantly promoted corporate growth performance, which remains robust across a series of tests. Mechanism analysis indicates that overall financing constraints and debt financing have significant moderating effects on the relationship between digital transformation and growth performance, whereas equity financing has similar effects only after PSM matching. Heterogeneity analysis shows that the promotion effect of digital transformation on growth performance is more pronounced in private enterprises, regions with superior business environments, and non-high-tech industries. Furthermore, both debt financing and equity financing were found to have a threshold effect on the growth performance promotion of enterprise digital transformation. Based on these, it is proposed that the configuration of enterprise capital scale and financing path should be considered when pursuing the positive effects of enterprise digital transformation.

Keywords: Digital transformation; Financing cost; Financing constraints (search for similar items in EconPapers)
JEL-codes: C33 C36 D22 D25 (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)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S105752192400468X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:96:y:2024:i:pa:s105752192400468x

DOI: 10.1016/j.irfa.2024.103536

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().