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Digital technology adoption and enterprise investment efficiency

Author

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  • Jiang, Qian
  • Zhang, Chaoshuai
  • Wei, Qianqing

Abstract

Digital technology applications have a significant impact on the high-quality development of enterprises. This study investigates the influence of digital technology adoption on enterprise investment efficiency using data from Chinese listed companies between 2001 and 2022. The findings indicate that digital technology adoption can notably enhance enterprise investment efficiency, particularly in non-state-owned enterprises, those with high equity concentration, and technology-intensive enterprises. Digital technology adoption can enhance the effectiveness of corporate investment by mitigating information asymmetry and easing corporate financing constraints. Our study provides policy insights for promoting enterprise investment and improving enterprise investment performance.

Suggested Citation

  • Jiang, Qian & Zhang, Chaoshuai & Wei, Qianqing, 2025. "Digital technology adoption and enterprise investment efficiency," Finance Research Letters, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:finlet:v:72:y:2025:i:c:s1544612324016520
    DOI: 10.1016/j.frl.2024.106623
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    1. Xiaoya Li & Min Zhao & Guang Yang & Xue Xu & Pengfei Fan, 2025. "An Analysis of the Spatial–Temporal Evolution and Influencing Factors of the Coupling Coordination Degree Between the Digital and Real Economies in China," Sustainability, MDPI, vol. 17(8), pages 1-27, April.

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    More about this item

    Keywords

    Digital technology adoption; Investment efficiency; Information asymmetry; Financing constraints;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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