IDEAS home Printed from https://ideas.repec.org/a/eee/pacfin/v90y2025ics0927538x25000095.html
   My bibliography  Save this article

Enterprise digital transformation and bank credit loans—Empirical evidence from listed companies in China

Author

Listed:
  • Chen, Xi
  • Wang, Qinggang
  • Wang, Shuai

Abstract

With the rapid development of the digital economy, digital transformation has become a strategic choice for enterprises across various industries. This study selects a sample of A-share listed companies in China from 2007 to 2021 to investigate how enterprise digital transformation impacts bank credit loans. The findings suggest that enterprise digital transformation is conducive to obtaining more such loans. The effect remains significant after mitigating potential endogeneity problems through instrumental variable and difference-in-difference methods. Mechanism tests show that enterprise digital transformation affects the amount of bank credit loans by improving enterprises' operating efficiency, enhancing external supervision, and mitigating default risk. Heterogeneity tests reveal that the promotion effect is more pronounced among companies with weak competitiveness, a low proportion of institutional investors, and low solvency. Overall, these findings provide theoretical and practical insights into how enterprises can use digital transformation to increase bank credit loans, as well as providing a reference for how enterprises can capitalize on the facilitative role of digital technology, which in turn promotes their development.

Suggested Citation

  • Chen, Xi & Wang, Qinggang & Wang, Shuai, 2025. "Enterprise digital transformation and bank credit loans—Empirical evidence from listed companies in China," Pacific-Basin Finance Journal, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:pacfin:v:90:y:2025:i:c:s0927538x25000095
    DOI: 10.1016/j.pacfin.2025.102672
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927538X25000095
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.pacfin.2025.102672?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:pacfin:v:90:y:2025:i:c:s0927538x25000095. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/pacfin .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.