Proceedings of the 3rd International Conference on Big Data Economy and Information Management, BDEIM 2022, December 2-3, 2022, Zhengzhou, China

Research Article

Digital Transformation and Enterprise Financing Constraints

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  • @INPROCEEDINGS{10.4108/eai.2-12-2022.2328724,
        author={Xiaoxiao  Shao and Liu  Yang},
        title={Digital Transformation and Enterprise Financing Constraints},
        proceedings={Proceedings of the 3rd International Conference on Big Data Economy and Information Management, BDEIM 2022, December 2-3, 2022, Zhengzhou, China},
        publisher={EAI},
        proceedings_a={BDEIM},
        year={2023},
        month={6},
        keywords={digital transformation; financing constraints; asymmetry of information; debt financing; equity financing},
        doi={10.4108/eai.2-12-2022.2328724}
    }
    
  • Xiaoxiao Shao
    Liu Yang
    Year: 2023
    Digital Transformation and Enterprise Financing Constraints
    BDEIM
    EAI
    DOI: 10.4108/eai.2-12-2022.2328724
Xiaoxiao Shao1, Liu Yang1,*
  • 1: Business School of Henan University
*Contact email: 10090092@henu.edu.cn

Abstract

This paper examines the impact of digital transformation of enterprises on their financing constraints, using data from A-share listed companies from 2009 to 2020 as a sample. The findings show that: (1) based on an investment-cash flow sensitivity model, digital transformation is found to significantly alleviate the financing constraints of enterprises. (2) In terms of heterogeneity, digital transformation of enterprises is more effective in alleviating their financing constraints in regions with a high degree of financial development and a good legal environment. (3) In terms of the path of action, digital transformation significantly increases new bank loans and new equity financing, but has no significant impact on new bond financing. This result remains robust after accounting for endogeneity.