Digital Transformation and Firm Risk-taking Behaviors
LIN Jing1, ZHONG Jiyin2
1. School of Economics, University of Chinese Academy of Social Sciences, Beijing 102488, China; 2. Institute of Economics, Chinese Academy of Social Sciences, Beijing 100836, China
Abstract Digital transformation is an important measure to promote the development of national digital economy strategy, and the level of enterprise risk taking is of great significance to high-quality economic development. Based on the data of listed companies from 2007 to 2020, this paper examines the impact of digital transformation on risk taking behavior.There are following empirical results. (1) The digital transformation significantly promotes enterprise risk taking behavior, and there are heterogeneity characteristics in property rights and profitability. The above conclusions still hold after a series of robustness tests. (2) In the enterprises with weak profitability and private property rights, digital transformation plays a stronger role in promoting enterprise risk-taking behavior. (3)The channel mechanism indicates that enterprise digital transformation can improve the level of enterprise risk taking by increasing the degree of strategic difference and promoting the degree of strategic radicalization. (4) The effectiveness of enterprise digital transformation needs the support of internal governance mechanism and external governance environment. Appropriate corporate governance arrangements and good external governance environment can effectively promote digital transformation to improve the level of risk-taking. This paper analyzes the relationship between digital transformation and risk-taking behavior from a micro perspective, and provides enlightenment for listed companies on how to better promote digital transformation.
2022, Vol. 39 
