Digital Transformation of Non-Financial Enterprises and Shadow Banking Business: Intensification or Mitigation

Abstract

As a new driving force for the high-quality development of China's economy, digital transformation is crucial to the development of multi-dimensional businesses of enterprises. This paper selects the A-share listed companies in Shanghai and Shenzhen from 2006 to 2020 as a sample, and examines the impact and mechanism of non-financial enterprises' digital transformation on shadow banking business from both theoretical and empirical perspectives. The study found that the digital transformation of non-financial enterprises can intensify the shadow banking business. The mechanism analysis shows that the digital transformation of enterprises intensifies the shadow banking business by enhancing the information advantage and inhibiting the regulatory level. Heterogeneity analysis found that digital transformation has a more obvious effect on shadow banking in enterprises with weak internal control and high-risk uncertainty. This article not only provides an implementation path for enterprises to better enjoy the dividends of digital transformation, but also provides more important experience and enlightenment for the government to help enterprises in digital transformation and guard against the development of shadow banking business.