Corporate inventory and cash holdings in digital economy strategy: Evidence from China

Chuan Zhang and Lixia Liu

Finance Research Letters, 2023, vol. 53, issue C

Abstract: Using a sample of Chinese listed companies from 2013 to 2019, this study investigates the impact of the implementation of digital economy strategies on corporate inventory and cash holdings. The results suggest that the level of cash holdings significantly increases with the in-depth implementation of corporates’ digital economy strategies. The mechanism analysis finds that the implementation of digital economy strategies to improve the level of corporate cash holdings is achieved through an increase in inventory turnover. Further study finds that firms with different internal governance characteristics exhibit heterogeneity in the impact of implementing digital economy strategies.

Keywords: Digital economy; Cash holding; Inventory; Strategy; Text mining (search for similar items in EconPapers)
JEL-codes: G34 M10 M41 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:53:y:2023:i:c:s1544612322007838

DOI: 10.1016/j.frl.2022.103607

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