Manufacturing enterprise digital transformation and financial flexibility improvement
Abstract
Using data from Chinese A-share listed manufacturing companies from 2012 to 2022, this study examines the impact and mechanisms of digital transformation (DT) on the financial flexibility. The results indicate that manufacturing DT enhances financial flexibility, including cash flexibility and debt flexibility, as is confirmed by rigorous robustness and endogeneity tests. The mechanism analysis reveals that DT enhances financial flexibility through improving information disclosure quality and promoting technological innovation capability. By filling a gap in the existing literature on the relationship between DT and financial flexibility, this study illuminates the crucial role of digital strategies in strengthening financial market stability.
Fields of Study & Subjects
Digital Transformation in Industry
Impact of AI and Big Data on Business and Society
Auditing
Earnings Management
Governance
Publication details
- Journal / source
- Finance research letters
- Publisher
- Elsevier BV
- Volume
- 91
- Pages
- 109489–109489
- Publication date
- 9 January 2026
- Language
- EN