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The impact of enterprise digital transformation on risk-taking: Evidence from China

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  • Luo, Wenbing
  • Yu, Yuxin
  • Deng, Mingjun

Abstract

With the continuous emergence of digital technology, the transformation and upgrading of enterprise digitalization has become the focus of the industry. This paper takes all A-share listed enterprises in China’s capital market from 2010 to 2021 as the sample, to test the impact of digital transformation on risk-taking. The research finds that digital transformation significantly promotes risk-taking level. Further analysis shows that the impact of enterprise digitalization on risk-taking has obvious heterogeneity, the positive impact is more significant in non-heavily polluting enterprises, small-scale enterprises and non-state-owned enterprises; investment efficiency and cost stickiness moderate the above relationship; digital transformation enhances risk-taking by improving managerial ability, strategic deviance and asset utilization. Our study provides enlightenment for enhancing the risk-taking level.

Suggested Citation

  • Luo, Wenbing & Yu, Yuxin & Deng, Mingjun, 2024. "The impact of enterprise digital transformation on risk-taking: Evidence from China," Research in International Business and Finance, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:riibaf:v:69:y:2024:i:c:s0275531924000783
    DOI: 10.1016/j.ribaf.2024.102285
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