Does corporate digital transformation reduce the level of corporate leverage manipulation?

Zhilong Zhao, Shu Rong and Wu Fang

Finance Research Letters, 2024, vol. 69, issue PA

Abstract: Digital transformation (DX) has emerged as a key focus in Chinese enterprises’ strategic realignment, but its effectiveness in mitigating leverage manipulation remains debatable. Using data from A-share listed companies in China, this study empirically investigates the impact of DX on corporate leverage manipulation. Results show that DX significantly reduces leverage manipulation. Furthermore, DX has a particularly strong mitigating effect on non-state-owned enterprises, small and medium-sized enterprises, and companies located in less marketized regions. By filling a gap in the existing literature on the relationship between DX and leverage manipulation, this study illuminates the pivotal role of digital strategies in fortifying financial market stability.

Keywords: Digital transformation; Corporate leverage manipulation level; Digital economy (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612324011395
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:finlet:v:69:y:2024:i:pa:s1544612324011395

DOI: 10.1016/j.frl.2024.106110

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().