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Digital transformation and corporate creditworthiness

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  • Zhen, Xiaofei
  • Zhou, Yiyang

Abstract

Utilizing panel data from China's A-share listed companies spanning 2007 to 2022, this paper examines the effects of digital transformation on corporate creditworthiness, focusing on the underlying mechanisms at play. The findings of this study provide compelling evidence that digital transformation constitutes a significant driver of corporate creditworthiness enhancement. The mediation effect tests indicate that digital transformation enhances corporate creditworthiness through the improvement of internal control quality. The heterogeneity analysis shows that state-owned enterprises, high-tech firms, and companies facing intense market competition experience a greater positive impact on their creditworthiness from digital transformation.

Suggested Citation

  • Zhen, Xiaofei & Zhou, Yiyang, 2025. "Digital transformation and corporate creditworthiness," Finance Research Letters, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:finlet:v:74:y:2025:i:c:s1544612325000078
    DOI: 10.1016/j.frl.2025.106742
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    Keywords

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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