Abstract

ABSTRACT This article empirically tests the effects of digital transformation on the cost of corporate debt capital by taking Chinese A-share listed companies in Shanghai and Shenzhen as research samples. The results show that enterprise digital transformation can effectively reduce the cost of debt capital. Further, using the financial situation as the threshold variable and applying the panel data threshold effect model, it is found that only the digital transformation of enterprises with good financial situations can reduce the cost of debt capital. In contrast, the digital transformation of enterprises with poor financial situations will increase the cost of debt capital instead.

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