The Impact of Digital Transformation on Corporate Short Term Lending and Long Term Investment -A Sample Analysis Based on Chinese A-share Listed Companies

Abstract

The lack of effective management of the planning and scheduling of funds by enterprises can lead to the emergence of short term loans and long term investments. Although short term loans and long term investments allow enterprises to arrange funds more flexibly and easily, they can seriously endanger the healthy and stable development of enterprises. Therefore, it is important to improve the current situation of the proliferation of short term loans and long term investments. In this paper, we study the economic effects of digital transformation on enterprises' short term loans and long term investments. Firstly, the collected sample data - 11-year financial data of Shanghai and Shenzhen A-share companies from 2011-2021 - are processed to make the data more realistic and representative, and then the data are empirically tested and regression analyzed using Stata and Spss software to study the effect of digital transformation on short loans and long investments of enterprises . The results of the study show that: digital transformation of enterprises can effectively inhibit enterprises' short loans and long investments; the larger the scale of enterprises and the larger the asset-liability ratio, the greater the possibility of enterprises' short loans and long investments. Finally, based on the research findings, recommendations are drawn: enterprises should allocate funds rationally; enterprises should expand the scale advantage of internal talents; the government should provide policy support for enterprises' digital transformation; and the internal and external market environment should be optimized.