Digital transformation, financing constraints and firm growth performance– From the perspective of financing channels

The rapid development of the digital economy is driving enterprises to undergo digital transformation. This research investigates how digital transformation affect corporate growth performance by eliminating financing limitations with the data of Chinese listed companies from 2010 to 2021. We find that (1) digital transformation has a substantial positive impact on corporate growth performance. (2) Both debt and equity financing play mediating roles in the relationship between digital transformation and corporate growth performance, where debt financing has a stronger mediating effect compared. (3) The positive effect is more noticeable for state-owned enterprises, high-tech enterprises, and eastern regions in China.