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.

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