Research on the Impact of Enterprise Digital Transformation on Supply Chain Financing Capability

Abstract

We examine how enterprise digital transformation affects supply chain financing capability with data from China’s A-share non-financial listed companies from 2013 to 2023, and we try to find the relationship between digital technology and financing ability in supply chain context. The results show that digital transformation can improve the financing capability in supply chain. Also, we find this effect can work by reducing information asymmetry. In fact, this can be seen from increased analyst coverage. Then we check internal corporate governance level as a boundary condition. It is worth noting that the role of internal control quality is not a simple linear enhancement and it shows a threshold effect which means the positive impact of digital transformation is only significant when quality of internal control is high and when the quality is low the impact is not significant. We reveal the mechanism of conditional synergy between digital technology and corporate governance in financing empowerment. The results can be used as a reference for enterprise on how to obtain financing advantages by improving governance structures during digital transformation.