The Impact of Enterprise Digital Transformation on Risk-Bearing Capacity

Against the backdrop of technological disruption and macroeconomic volatility, the importance of corporate digital evolution in promoting risk-taking is a critical issue for companies seeking growth and innovation. This article investigates the causal link between corporate digitalization and risk-taking propensity using a panel of Chinese Growth Enterprise Market (GEM) constituents from 2012 to 2022. Baseline estimates establish a robust positive relationship, demonstrating that digital integration significantly elevates corporate risk tolerance, and this result remains consistent after robustness checks. Mechanism analyses identify the alleviation of capital constraints and the augmentation of operational agility as the primary transmission channels driving this effect. Furthermore, cross-sectional tests reveal distinct structural asymmetries: the risk-enhancing utility of digitalization is attenuated by severe economic policy uncertainty, yet strictly amplified within private entities, technologically intensive sectors, and firms located in eastern provinces. This research clarifies the fundamental way in which corporate digital transformation affects risk-taking, offering theoretical guidance for GEM-listed firms developing digital strategies and supplying empirical grounds for macroeconomic policies aimed at integrating the digital and real economies.

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Publication Details

Journal
Emerging Markets Finance and Trade
Published
2026-06-24
DOI
https://doi.org/10.1080/1540496x.2026.2693587
Primary Topic
Digital Innovation in Industries
Type
article
Field-Weighted Citation Impact
0.00

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article

The Impact of Enterprise Digital Transformation on Risk-Bearing Capacity

Lingxiao Yang, Ting Zhang, Qi Shi, Xiaojing Chen
Emerging Markets Finance and Trade
Digital Innovation in Industries
article

The Impact of Enterprise Digital Transformation on Risk-Bearing Capacity

Lingxiao Yang, Ting Zhang, Qi Shi, Xiaojing Chen
article en

Abstract

Against the backdrop of technological disruption and macroeconomic volatility, the importance of corporate digital evolution in promoting risk-taking is a critical issue for companies seeking growth and innovation. This article investigates the causal link between corporate digitalization and risk-taking propensity using a panel of Chinese Growth Enterprise Market (GEM) constituents from 2012 to 2022. Baseline estimates establish a robust positive relationship, demonstrating that digital integration significantly elevates corporate risk tolerance, and this result remains consistent after robustness checks. Mechanism analyses identify the alleviation of capital constraints and the augmentation of operational agility as the primary transmission channels driving this effect. Furthermore, cross-sectional tests reveal distinct structural asymmetries: the risk-enhancing utility of digitalization is attenuated by severe economic policy uncertainty, yet strictly amplified within private entities, technologically intensive sectors, and firms located in eastern provinces. This research clarifies the fundamental way in which corporate digital transformation affects risk-taking, offering theoretical guidance for GEM-listed firms developing digital strategies and supplying empirical grounds for macroeconomic policies aimed at integrating the digital and real economies.

Emerging Markets Finance and Trade
Shanghai Lixin University of Accounting and Finance (CN), Shanghai University of International Business and Economics (CN)
Education and Scientific Research Project of Shanghai
Openalex Percentile: Top 4%
Digital Innovation in Industries
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