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Tax incentives, marketization level, and corporate digital transformation

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  • Fu, Chao
  • Luo, Dianying
  • Zhang, Jiaoshu
  • Li, Wenxia

Abstract

This paper uses data from Chinese listed companies from 2012 to 2022 to analyze the relationship between tax incentives, marketization level, and corporate digital transformation. The results indicate that tax incentives can promote digital transformation in enterprises, and marketization levels can accelerate this transformation. There is a threshold effect on the influence of tax incentives on digital transformation; financing constraints act as a mediator in this relationship, while technological innovation capability plays a moderating role between marketization level and digital transformation. Furthermore, the moderating effect of technological innovation capability varies across different types of enterprises in terms of their relationship with marketization and digital transformation.

Suggested Citation

  • Fu, Chao & Luo, Dianying & Zhang, Jiaoshu & Li, Wenxia, 2025. "Tax incentives, marketization level, and corporate digital transformation," International Review of Economics & Finance, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:reveco:v:97:y:2025:i:c:s105905602400769x
    DOI: 10.1016/j.iref.2024.103777
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