Digital Transformation and Corporate Leverage: A Panel Study of Capital Structure Dynamics

With the rapid development of the global digital economy (DE), Digital Transformation (DX) has become an important means for enterprises to enhance competitiveness and optimize capital structure. Based on annual report data from 5,639 listed companies in China from 1999 to 2023, this study examines the impact of DX on corporate capital structure. The research finds that DX significantly increases the level of the debt-to-asset ratio, primarily driven by increased investments in research and development and technological infrastructure during the DX process, enhanced market opportunity identification capabilities, and rising demand for technology talent, which collectively lead enterprises to rely more on debt financing. Fixed-effect regression analysis confirms the positive impact of DX on the corporate debt-to-asset ratio, and robustness tests validate the stability of the research results under different indicators of DX, providing practical references for enterprises on how to steadily promote DX and reasonably optimize capital structure in the context of the DE. The study indicates that although DX offers enterprises opportunities for innovation and growth, excessively high leverage may pose potential financial risks. Therefore, while advancing digital strategies, enterprises should reasonably control their debt levels to ensure financial stability.