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Banking competition and digital transformation

Author

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  • Bai, Zonghang
  • Ban, Yuanhao
  • Hu, Haifeng

Abstract

This paper explores the effects and influence mechanism of banking competition on digital transformation in Chinese listed companies, an area that has not been explored in the existing literature. Using A-share listed companies in China from 2008 to 2019 as a research sample. This paper finds that banking competition significantly promotes enterprise digital transformation. And this promoting effect is more obvious in the regions with relatively low proportion of state-owned banks and entry of non-local banks. Mechanism analysis shows that banking competition boosts enterprise digital transformation by alleviating financing constraints, reducing operating risks and increasing R&D investment.

Suggested Citation

  • Bai, Zonghang & Ban, Yuanhao & Hu, Haifeng, 2024. "Banking competition and digital transformation," Finance Research Letters, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:finlet:v:61:y:2024:i:c:s1544612324000989
    DOI: 10.1016/j.frl.2024.105068
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    References listed on IDEAS

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    1. Menslu Sultanova & Akylbek Sultanov & Yelnaz Zhangaliyeva & Gaukhar Zhanibekova & Mainur Ordabayeva & Altynshash Zamanbekova & Nurkhat Ibadildin & Saule Primbetova, 2024. "Identifying features of the level of digitalization of banking services in different countries," Eastern-European Journal of Enterprise Technologies, PC TECHNOLOGY CENTER, vol. 5(13 (131)), pages 58-66, October.

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    More about this item

    Keywords

    Banking competition; Digital transformation; Financing constraints; Operational risk; Research input;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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