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Local gambling culture and corporate digital transformation in China: A pre-registered report

Author

Listed:
  • Yao, Haixiang
  • Luo, Meizhen
  • Liang, Haoye
  • Sun, Zhaojun

Abstract

Digital transformation has become an important corporate strategic investment and has received strong policy support in China. However, many firms still face substantial difficulties in making substantive progress in digital transformation. This pre-registered report examines whether local gambling culture affects corporate digital transformation using Chinese A-share listed firms from 2011 to 2023. We argue that local gambling culture may discourage digital transformation by weakening firms' commitment to long-term, disciplined investment. We will use panel fixed-effects regressions to test the proposed hypotheses and a set of pre-specified tests to alleviate endogeneity concerns. In addition, we propose two mechanisms, managerial myopia and debt maturity mismatch, to explain this effect. We further examine heterogeneity across firm characteristics, external monitoring, and financial constraints, and conduct additional analyses on managers' personal gambling preferences, peer firms' digital transformation, digital-related executive appointments, and government support. This study links informal local culture to corporate intertemporal investment decisions and identify a potential cultural barrier to digital transformation.

Suggested Citation

  • Yao, Haixiang & Luo, Meizhen & Liang, Haoye & Sun, Zhaojun, 2026. "Local gambling culture and corporate digital transformation in China: A pre-registered report," Pacific-Basin Finance Journal, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:pacfin:v:99:y:2026:i:c:s0927538x26002234
    DOI: 10.1016/j.pacfin.2026.103277
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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
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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