Does increased digital transformation decrease corporate cash holdings? The moderating role of business environment quality

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-01-16 DOI:10.1016/j.frl.2025.106800

Huong Vu Van, Cuong Ly Kim

引用次数: 0

Abstract

Despite the growing impact of digital transformation on firms' financial performance, its effect on corporate cash holdings remains underexplored. This study addresses this research gap by investigating the relationship between digital transformation and corporate cash holdings in Vietnam. The findings, based on microeconometric analysis of Vietnamese-listed firms, indicate that digital transformation reduces corporate cash holdings. However, this effect diminishes when considering the moderating role of business environment quality. These results highlight that digital transformation policies alone may be insufficient to address excessive corporate cash holdings without concurrent improvements in the quality of the business environment.

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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