The Research on the Impact of Digital Transformation on Corporate Financialization - Evidence from China

DOI: https://doi.org/10.62517/jel.202514213

Author(s)

Wen Hao

Affiliation(s)

Sichuan Agricultural University,Yaan, Sichuan,China

Abstract

As market entities, enterprises enhance the storage, transmission and analysis of data through digital transformation, leading to significant changes in their production efficiency and business models. On the other hand, in the context of increasingly fierce market competition, to alleviate the profit reduction caused by the decline in the returns of the real economy, the financialization of enterprises has become a common phenomenon. How to reduce the financialization of enterprises has become a topic of high social concern. This paper empirically examines the impact of digital transformation on the financialization of enterprises using non-financial listed companies on the Shanghai and Shenzhen A-share markets in China from 2013 to 2023 as the research sample. The study finds that digital transformation inhibits the financialization of enterprises. Digital transformation inhibits the financialization of enterprises by reducing operational risks. This research provides new evidence for reducing the financialization of enterprises.

Keywords

Digital Transformation; Corporate Financialization; Business Risks

References

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