Abstract
We investigate the impact of enterprise digital transformation on bond credit spread based on Chinese A-share listed companies. The empirical results show that digital transformation has a significant impact on reducing credit spread and the negative relation is robust to a number of robustness checks. Subgroup analyses suggest that the reduction effect is more pronounced in state-owned enterprises, non-duality firms, firms with a higher proportion of independent directors, and firms located in high-marketization areas or eastern regions. Increasing total factor productivity, reducing information asymmetry, and enhancing internal control are three possible mechanisms by which digital transformation helps reduce credit spread.
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