The influence of digital transformation on Chinese firms' outward foreign direct investment

Lijun Zhu

Finance Research Letters, 2025, vol. 72, issue C

Abstract: This research employs a comprehensive dataset of China's A-share publicly listed companies, spanning the period from 2012 to 2022, to empirically scrutinize the implications of digital transformation on enterprises' endeavors in outward foreign direct investment (OFDI). The results obtained demonstrate a positive and significant stimulus effect of digital transformation on OFDI activities. A deeper analysis of heterogeneity further reveals that, within the context of state-owned enterprises (SOEs), digital transformation acts as an even more potent accelerator of OFDI. Moreover, across all enterprises, digital transformation effectively alleviates financing constraints, thereby creating a more conducive environment for the pursuit of OFDI.

Keywords: Digital transformation; OFDI; Financing constraints (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:72:y:2025:i:c:s1544612324015964

DOI: 10.1016/j.frl.2024.106567

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