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Corporate maturity mismatch and enterprise digital transformation: Evidence from China

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  • Hu, Yan
  • Che, Dexin
  • Wu, Fei
  • Chang, Xi

Abstract

This paper sheds light on the impact of corporate maturity mismatch on enterprise digital transformation for the first time. We conduct in-depth text analysis on a huge number of annual reports and construct the earliest digital transformation index in China. The results show that the greater the corporate maturity mismatch is, the worse the enterprise digital transformation is, and this effect is more pronounced in non-SOEs, manufacturing industries and growing or mature firms. Furthermore, corporate maturity mismatch hinders enterprise digital transformation by exacerbating financial distress and distorting investment behavior, and the financial regulation plays a role in mitigating this negative effect. The findings provide insights into how to promote the development of the digital economy in China.

Suggested Citation

  • Hu, Yan & Che, Dexin & Wu, Fei & Chang, Xi, 2023. "Corporate maturity mismatch and enterprise digital transformation: Evidence from China," Finance Research Letters, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:finlet:v:53:y:2023:i:c:s154461232300051x
    DOI: 10.1016/j.frl.2023.103677
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    Cited by:

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    4. Zhu, Changchun & Li, Na & Ma, Jing, 2024. "Impact of CEO overconfidence on enterprise digital transformation: Moderating effect based on digital finance," Finance Research Letters, Elsevier, vol. 59(C).
    5. Sen Wang & Jinye Li, 2023. "Does Digital Transformation Promote Green and Low-Carbon Synergistic Development in Enterprises? A Dynamic Analysis Based on the Perspective of Chinese Listed Enterprises in the Heavy Pollution Indust," Sustainability, MDPI, vol. 15(21), pages 1-22, November.
    6. Zhao, Shuang & Zhang, Liqun & Peng, Lin & Zhou, Haiyan & Hu, Feng, 2024. "Enterprise pollution reduction through digital transformation? Evidence from Chinese manufacturing enterprises," Technology in Society, Elsevier, vol. 77(C).
    7. Zhao, Xiaoqing & Yao, Chen, 2024. "Exacerbation or suppression? Digital transformation and shadow banking activities of non-financial firms," Finance Research Letters, Elsevier, vol. 61(C).
    8. Gao, Xing & Lai, Xiaobing & Huang, Ting & Lai, Huisu, 2024. "Does social dishonesty accelerate corporate maturity mismatch of investment and financing?," Finance Research Letters, Elsevier, vol. 64(C).
    9. Wu, Jiaxu & Yang, Yibing, 2024. "The impact of bank-enterprise distance on the digital economic value of manufacturing enterprises," Finance Research Letters, Elsevier, vol. 60(C).
    10. Hu, Mingsheng & Li, Bowen, 2024. "Potential risks in the easy market access: A perspective from corporate asset-debt maturity mismatch," Research in International Business and Finance, Elsevier, vol. 70(PA).
    11. Jiajia Liu & Kexin Zhou & Ye Zhang & Fangcheng Tang, 2023. "The Effect of Financial Digital Transformation on Financial Performance: The Intermediary Effect of Information Symmetry and Operating Costs," Sustainability, MDPI, vol. 15(6), pages 1-22, March.
    12. Ying Wu & Yuanyue Deng, 2024. "Does digital transformation crowd out the employment of lower skill labor?," Bulletin of Economic Research, Wiley Blackwell, vol. 76(3), pages 726-748, July.
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    19. Wu, Fei & Hu, Yan & Shen, Me, 2024. "The color of FinTech: FinTech and corporate green transformation in China," International Review of Financial Analysis, Elsevier, vol. 94(C).

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    More about this item

    Keywords

    Corporate maturity mismatch; Enterprise digital transformation; Financial distress; Corporate financialization; Big data; Natural language processing;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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