Does the Capital Structure Affect the Digital Transformation of Enterprises? Mediating Role Based on Financing Costs

Abstract

With the rapid advancement of the digital economy, enterprises are increasingly leveraging digital transformation as a key driver of high-quality development. Despite its strategic importance, systematic research on how capital structure influences digital transformation remains limited. Drawing on data from listed companies in A-share manufacturing industries from 2009 to 2021, this study employs empirical analysis to explore the impact of asset-liability ratios on digital transformation. Findings indicate that a higher asset-liability ratio significantly accelerates the digital transformation process in manufacturing enterprises. Under debt financing pressure, firms tend to enhance production efficiency and reduce operational costs through digital technologies, thereby strengthening competitiveness and solvency. Moreover, financing costs play a crucial mediating role in the relationship between asset-liability ratios and enterprise digitization. A higher debt burden compels businesses to seek digital solutions for improving efficiency and profitability, mitigating financial risks in the process. This study not only deepens the understanding of key factors influencing digital transformation but also provides empirical support for optimizing corporate capital structures and shaping digital development strategies.