Differences make a difference: Board diversity and enterprise digital transformation

IF 7.9 2区经济学 Q1 ECONOMICS

Economic Analysis and Policy Pub Date : 2025-03-26 DOI:10.1016/j.eap.2025.03.046

Huaining Xu , Shasha Liu , Gaowen Kong

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引用次数: 0

Abstract

Our study examines the influence of board diversity on enterprise digital transformation and its underlying mechanisms. We find that board diversity significantly facilitates digital transformation, a finding that remains consistent across various tests. Notably, this positive effect is primarily attributed to the easing of financing constraints and a heightened tolerance for risk. Furthermore, the study indicates that in scenarios characterized by poor debt repayment capacity, low credit rating, excessive debt caution, pronounced underinvestment, and non-state ownership, the role of board diversity in advancing digital transformation becomes more pronounced. Additionally, our research highlights that the impact of occupational diversity is more significant than that of social diversity, and the influence of diversity among executive directors is more substantial than that among non-executive directors in driving digital transformation. With the enhancement of board diversity and the advancement of digital transformation, enterprise value has been significantly improved.

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来源期刊

Economic Analysis and Policy ECONOMICS-

CiteScore

9.80

自引率

9.20%

发文量

231

审稿时长

93 days

期刊介绍： Economic Analysis and Policy (established 1970) publishes articles from all branches of economics with a particular focus on research, theoretical and applied, which has strong policy relevance. The journal also publishes survey articles and empirical replications on key policy issues. Authors are expected to highlight the main insights in a non-technical introduction and in the conclusion.