An Exploration of Patient Capital on Enterprise Digital Transformation

This study examines the impact of patient capital on enterprise digital transformation based on data from A-share listed companies from 2014 to 2023 (32,665 observations). Patient capital is defined as stable equity (measured by the shareholding ratio of long-term institutional investors). Descriptive statistics and correlation analysis reveal that the shareholding ratio of institutional investors is significantly positively correlated with the degree of digital transformation (β=0.015, p<0.05), though the effect size is smaller than traditional factors such as firm size. The findings suggest that patient capital promotes enterprise digital transformation by mitigating information asymmetry and providing long-term financial support, with its mechanism linked to reducing managerial short-termism. These conclusions enrich the theory of enterprise innovation and provide empirical evidence for fostering patient capital and advancing digital transformation.