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Patient capital and corporate digital transformation: Evidence from Chinese A-share listed firms

Author

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  • Zhang, Hao
  • Zhang, Wenling
  • Yi, Xingjian

Abstract

This study investigates the impact of patient capital on corporate digital transformation, using panel data from Chinese A-share listed firms between 2012 and 2023. The empirical findings reveal that patient capital significantly facilitates digital transformation, with strategic equity exhibiting a stronger and more consistent effect than relational debt. Mechanism analyses demonstrate that patient capital promotes transformation by enhancing investment efficiency, fostering knowledge diversification and integration, and strengthening risk-sharing frameworks. Heterogeneity tests further indicate that the effect is more pronounced among non-state-owned enterprises, firms led by non-digitally proficient executives, and non-high-tech companies. Moreover, in highly competitive industries, patient capital serves to stabilize resource allocation and mitigate technological uncertainty. These findings offer theoretical contributions and practical policy implications, highlighting the importance of developing long-term capital structures, flexible regulatory environments, and robust risk-sharing mechanisms to support enterprise digital transformation.

Suggested Citation

  • Zhang, Hao & Zhang, Wenling & Yi, Xingjian, 2026. "Patient capital and corporate digital transformation: Evidence from Chinese A-share listed firms," Pacific-Basin Finance Journal, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:pacfin:v:95:y:2026:i:c:s0927538x25003142
    DOI: 10.1016/j.pacfin.2025.102977
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