Articlehybrid2023

Digital transformation and enterprise inefficient investment: Under the view of financing constraints and earnings management

38 citations0/0 files storedJournal of Digital Economy

No readable copy stored yet — this record is metadata only.

Corporate Finance and Governance Auditing, Earnings Management, Governance Digital Economy and Transformation

Abstract

In the context of the digital age, digital transformation provides new inspiration and direction for enterprise investment. This paper examines the potential mechanisms through which digital transformation affects corporate inefficient investment with the data from 2011 to 2019 of Chinese listed enterprises. Specifically, the findings indicate that digital transformation effectively curbs underinvestment by alleviating the pressure of financing constraints and inhibits overinvestment through regulating earnings management. Further analysis of the heterogeneity of industrial difference and property right unveil that the inhibitory effect of digital transformation on underinvestment and overinvestment in non-state-owned and manufacturing enterprises is more substantial than that in state-owned and non-manufacturing enterprises. These findings provide some insights for enterprises to optimize investment decisions by promoting digital transformation.

Citations in this library

Stored only when both papers are in the corpus — 38 citations exist upstream.

References

1958The Cost of Capital, Corporation Finance and the Theory of Investment 1981Credit Rationing in Markets with Imperfect Information 2008The cost of capital, corporation finance and the theory of investment 1991Earnings Management During Import Relief Investigations 1997Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?1995Detecting Earnings Management.2010New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index 2005Law, finance, and economic growth in China

Cited by

2024The “Double-Edged Sword” effect of air quality information disclosure policy—Empirical evidence based on the digital transformation of Chinese listed companies 2024Digitalization, green transformation, and the high-quality development of Chinese tourism enterprises 2025Enterprise digital transformation and investment efficiency: Empirical evidence from listed enterprises in China

Imported from OpenAlex (CC0) — nothing here is generated.