Can corporate digital transformation alleviate financing constraints?

Nonlinear effects of enterprise digital transformation on environmental, social and governance (ESG) performance: evidence from China

“…Some literature supports the view that digital transformation of enterprises has significant social significance, believing that it can significantly improve corporate social responsibility performance by strengthening internal control and weakening corporate opportunistic behavior (Hong Jun et al , 2021), enhance the strategic orientation of corporate social responsibility (Vollero et al , 2020) and narrow the labor income gap within enterprises. Digital transformation has enhanced corporate green innovation (He et al , 2023), promoted the green transformation of manufacturing enterprises and effectively improve enterprise environmental performance (Si et al , 2023). Xu et al (2023) confirmed the positive impact of enterprise digital transformation on the ecological environment based on the data of Chinese A-share resource-based-listed enterprises, and concluded that digitalization facilitates resource-based enterprises to break through the double constraints of resources and the environment, and significantly improves the environmental performance of the enterprises by accelerating the accumulation of human capital, stimulating the green technological innovation and enhancing the disclosure of environmental information and the ability of environmental governance.…”

The impact of market-incentive environmental regulation policies on corporate environmental costs: Evidence from China’s carbon trading policy

“…Third, we constructed a dummy variable based on firms' financing constraints to examine the heterogeneous impact of financing constraints on firms. The level of financing constraints a firm faces is measured using the KZ index [70], with a higher KZ index indicating greater financing constraints. As shown in Fig 3, the coefficient of the interaction between CTP and KZ_Index is positive and significant at least at the 10% level.…”

Enterprise Digital Transformation and Green Technology Innovation: Evidence from Innovation Sub-Dimension and Time Lag Effect

“…The results in column (1) of Table 5 show that the coefficient of DigTra is significantly negative, while the coefficient of DigTra reported in column ( 2) is significantly positive, indicating that enterprise digital transformation can significantly alleviate enterprise financing constraints while promoting enterprise green technology innovation. Through digital transformation, enterprises can use digital technology to collect and analyze massive user data, with the ability to accurately understand the needs and preferences of users [43], before adjusting business strategies, enhancing operational efficiency, and improving business performance, with the result of alleviating enterprise finance constraints [44], benefiting corporate green innovation activities. Besides, digital technology can significantly reduce the degree of information asymmetry between banks and enterprises, helping enterprises obtain credit support in a timely manner and helping enterprise solve the problem of "difficult and expensive financing", with more green technological innovation activities [28].…”