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Digital transformation, financing constraints and firm growth performance–From the perspective of financing channels

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  • Wei, Lei
  • Li, Mou

Abstract

The rapid development of the digital economy is driving enterprises to undergo digital transformation. This research investigates how digital transformation affect corporate growth performance by eliminating financing limitations with the data of Chinese listed companies from 2010 to 2021. We find that (1) digital transformation has a substantial positive impact on corporate growth performance. (2) Both debt and equity financing play mediating roles in the relationship between digital transformation and corporate growth performance, where debt financing has a stronger mediating effect compared. (3) The positive effect is more noticeable for state-owned enterprises, high-tech enterprises, and eastern regions in China.

Suggested Citation

  • Wei, Lei & Li, Mou, 2024. "Digital transformation, financing constraints and firm growth performance–From the perspective of financing channels," Finance Research Letters, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324003027
    DOI: 10.1016/j.frl.2024.105272
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    References listed on IDEAS

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    Cited by:

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    4. Minyu Zheng & Normaziah Mohd Nor & Zariyawati Mohd Ashhari, 2025. "Exacerbate or alleviate? Impact of economic policy uncertainty on excess cash holdings," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-15, December.
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    8. Zhang, Fujuan & Wang, Kaili & Zhang, Yuge, 2026. "Digital marketing, credit constraints, and enterprise innovation efficiency," Finance Research Letters, Elsevier, vol. 89(C).
    9. Peng, Zihao & Huang, Yiqi & Liu, Luanhong & Xu, Wanli & Qian, Xihong, 2024. "How government digital attention alleviates enterprise financing constraints: An enterprise digitalization perspective," Finance Research Letters, Elsevier, vol. 67(PB).
    10. Ye, Xincai & Miao, Lin, 2025. "Digital transformation and green finance efficiency of tourism enterprises: The effect of credit ratings," International Review of Financial Analysis, Elsevier, vol. 106(C).
    11. Huwei Wen & Rui Cao & Xuan-Hoa Nghiem & Nadia Doytch, 2026. "Banking fintech and corporate innovation in China’s carbon-intensive industries: evidence from different panel approaches," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 12(1), pages 1-38, December.

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