Can data asset intensity alleviate the risk of financial distress?

Data asset intensity has emerged as a critical determinant of firm resilience in the digital economy; however, its role in financial stability remains underexplored. Using panel data on Chinese listed firms from 2014 to 2024, financial distress is assessed using Z-score and O-score, whereas data asset intensity is constructed from financial disclosures relative to intangible capital. Results show that great data asset reliance significantly reduces distress risk, and the effect remains robust to alternative measures and specifications. A difference-in-differences design centered on the 2019 policy stipulating institutionalized data as a production factor reveals that the stabilizing effect of data assets strengthened after the orm. Ownership structure further conditions these dynamics, with non-state-owned enterprises deriving stronger benefits from data orientation than their state-owned counterparts. The findings enrich the literature on intangible assets and financial distress and provide theoretical, managerial, and policy implications for data asset governance and disclosure in emerging markets.