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Corporate inventory and cash holdings in digital economy strategy: Evidence from China

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  • Zhang, Chuan
  • Liu, Lixia

Abstract

Using a sample of Chinese listed companies from 2013 to 2019, this study investigates the impact of the implementation of digital economy strategies on corporate inventory and cash holdings. The results suggest that the level of cash holdings significantly increases with the in-depth implementation of corporates’ digital economy strategies. The mechanism analysis finds that the implementation of digital economy strategies to improve the level of corporate cash holdings is achieved through an increase in inventory turnover. Further study finds that firms with different internal governance characteristics exhibit heterogeneity in the impact of implementing digital economy strategies.

Suggested Citation

  • Zhang, Chuan & Liu, Lixia, 2023. "Corporate inventory and cash holdings in digital economy strategy: Evidence from China," Finance Research Letters, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:finlet:v:53:y:2023:i:c:s1544612322007838
    DOI: 10.1016/j.frl.2022.103607
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    References listed on IDEAS

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    9. Yu, Yun, 2025. "Research on the influence of eenterprises digital transformation on inventory turnover," International Review of Economics & Finance, Elsevier, vol. 103(C).
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    Keywords

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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