Chain Shareholders and Enterprises Digital Transformation: Empirical Evidence from Listed Companies in China

This study delves into the pivotal role of chain shareholders in fostering digital transformation within Chinese-listed companies from 2014 to 2022. By employing a robust empirical analysis, we uncover a significant positive relationship between the presence of chain shareholders and the likelihood and extent of digital transformation initiatives. Our findings highlight the crucial influence of chain shareholders in supplying necessary financial resources, facilitating the exchange of vital information, and leveraging their extensive networks to spur innovation and technological adoption. Interestingly, the impact is more pronounced in non-state-owned businesses, companies outside high-tech sectors, enterprises in "Broadband China" demonstration cities, and those in growth stages, underscoring the multifaceted nature of digital transformation drivers. Furthermore, through robustness checks and endogenous tests, we validate the significance of chain shareholders in mitigating financial constraints and providing a competitive edge in the rapidly evolving digital economy. This research contributes to the understanding of corporate governance's impact on technological innovation, offering valuable insights for policymakers, business leaders, and academics striving to harness digital technologies for sustainable development in the knowledge economy. Our findings advocate for strategic stakeholder engagement and governance reforms to facilitate a conducive environment for digital transformation, thereby enhancing corporate competitiveness and economic resilience in the digital era.