The Impact of Enterprise Digital Transformation on Risk-Bearing Capacity
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.
Fields of Study & Subjects
Digital Innovation in Industries
Information Technology Governance and Strategy
Digital Transformation in Industry
Publication details
- Journal / source
- Emerging Markets Finance and Trade
- Publisher
- Informa UK Limited
- Pages
- 1–15
- Publication date
- 24 June 2026
- Language
- EN