Research on the impact of digital transformation on Enterprise Risk

Abstract

This paper selects Shanghai and Shenzhen A-share companies from 2011 to 2020 as research samples to explore the impact of digital transformation on enterprise market risk and its mechanism.The results show that digital transformation can effectively reduce the market risks faced by enterprises. Mechanism test shows that digitalization reduces enterprise risks by improving enterprise total factor productivity and alleviating financing constraints, and production efficiency and financing constraints play a part of the intermediary effect.The conclusion of this paper has certain reference significance for boosting the confidence of enterprises in digitalization and reducing the market risk of enterprises.