Digital transformation and corporate cash holding in China's A-share listed companies
Identifikátory výsledku
Kód výsledku v IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F75081431%3A_____%2F22%3A00002513" target="_blank" >RIV/75081431:_____/22:00002513 - isvavai.cz</a>
Výsledek na webu
<a href="https://www-scopus-com.ezproxy.techlib.cz/record/display.uri?eid=2-s2.0-85147207696&origin=resultslist&sort=plf-f&src=s&st1=Digital+transformation+and+corporate+cash+holding+in+China%27s+A-share+listed+companies&sid=14153e009d33d5aa26724011dc9890fa&sot=b" target="_blank" >https://www-scopus-com.ezproxy.techlib.cz/record/display.uri?eid=2-s2.0-85147207696&origin=resultslist&sort=plf-f&src=s&st1=Digital+transformation+and+corporate+cash+holding+in+China%27s+A-share+listed+companies&sid=14153e009d33d5aa26724011dc9890fa&sot=b</a>
DOI - Digital Object Identifier
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Alternativní jazyky
Jazyk výsledku
angličtina
Název v původním jazyce
Digital transformation and corporate cash holding in China's A-share listed companies
Popis výsledku v původním jazyce
Research background: In the digital era, digital transformation has become a strategic imperative for leadership agenda. Many firms have accelerated their pace in digital transformation to improve their performance and competitiveness. Despite increasing attention in the literature on the role of digital transformation in firms’ operations, understanding the effect of digital transformation on corporate finance remains limited. This study focuses on cash holdings, which are essential for firms to survive and thrive. Purpose of the article: The aim of this paper is to examine the critical role of digital transformation on the cash holdings of listed firms in China and provide micro evidence regarding the economic consequences of the digital economy from firm level. This study also aims to deepen our understanding of the influence of digital transformation on firms’ operation and financial policy. Additionally, this paper attempts to provide relevant guidance for implementing policies to promote digital transformation and devise corresponding cash holding strategies. Methods: The text analysis method is used to measure the degree of digital transformation of China’s A-share listed companies. The sample covers 19,337 observations from 2007–2020. A multiple regression model with firm and year fixed effect is developed to investigate the relationship between digital transformation and corporate cash holdings. In the robustness test, this paper substitutes the independent and dependent variables, and adopts instrumental variable estimation method. In the mechanism test, this paper uses the sub-sample regression method in the mechanism test. Findings & value added: This study reveals that digital transformation can significantly reduce corporate cash holdings by alleviating the precautionary motive, agency motive and transaction motive of cash holdings. Further analysis shows that the negative effect of digital transformation on cash holdings is more profound in high-tech firms and non-state-owned enterprises. The methodology applied in this paper can be used in other economic research of firms. This study provides insights into the effects of digital transformation on corporate financial policy. This provides a solution for reducing firms’ cash holdings. This study also deepens the understanding of digital transformation from a corporate perspective. Copyright © Instytut Badań Gospodarczych / Institute of Economic Research (Poland).
Název v anglickém jazyce
Digital transformation and corporate cash holding in China's A-share listed companies
Popis výsledku anglicky
Research background: In the digital era, digital transformation has become a strategic imperative for leadership agenda. Many firms have accelerated their pace in digital transformation to improve their performance and competitiveness. Despite increasing attention in the literature on the role of digital transformation in firms’ operations, understanding the effect of digital transformation on corporate finance remains limited. This study focuses on cash holdings, which are essential for firms to survive and thrive. Purpose of the article: The aim of this paper is to examine the critical role of digital transformation on the cash holdings of listed firms in China and provide micro evidence regarding the economic consequences of the digital economy from firm level. This study also aims to deepen our understanding of the influence of digital transformation on firms’ operation and financial policy. Additionally, this paper attempts to provide relevant guidance for implementing policies to promote digital transformation and devise corresponding cash holding strategies. Methods: The text analysis method is used to measure the degree of digital transformation of China’s A-share listed companies. The sample covers 19,337 observations from 2007–2020. A multiple regression model with firm and year fixed effect is developed to investigate the relationship between digital transformation and corporate cash holdings. In the robustness test, this paper substitutes the independent and dependent variables, and adopts instrumental variable estimation method. In the mechanism test, this paper uses the sub-sample regression method in the mechanism test. Findings & value added: This study reveals that digital transformation can significantly reduce corporate cash holdings by alleviating the precautionary motive, agency motive and transaction motive of cash holdings. Further analysis shows that the negative effect of digital transformation on cash holdings is more profound in high-tech firms and non-state-owned enterprises. The methodology applied in this paper can be used in other economic research of firms. This study provides insights into the effects of digital transformation on corporate financial policy. This provides a solution for reducing firms’ cash holdings. This study also deepens the understanding of digital transformation from a corporate perspective. Copyright © Instytut Badań Gospodarczych / Institute of Economic Research (Poland).
Klasifikace
Druh
J<sub>SC</sub> - Článek v periodiku v databázi SCOPUS
CEP obor
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OECD FORD obor
50200 - Economics and Business
Návaznosti výsledku
Projekt
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Návaznosti
V - Vyzkumna aktivita podporovana z jinych verejnych zdroju
Ostatní
Rok uplatnění
2022
Kód důvěrnosti údajů
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Údaje specifické pro druh výsledku
Název periodika
Oeconomia Copernicana
ISSN
2083-1277
e-ISSN
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Svazek periodika
13
Číslo periodika v rámci svazku
4
Stát vydavatele periodika
PL - Polská republika
Počet stran výsledku
36
Strana od-do
1081-1116
Kód UT WoS článku
000907675800010
EID výsledku v databázi Scopus
2-s2.0-85147207696