Financial asset allocations, economic policy uncertainty, and enterprise digital transformation

In this paper, the impact of financial asset allocations on digital transformation is empirically explored by selecting a sample of 1,263 Chinese A-share manufacturing enterprises. In addition, the maturity difference, moderating effect, and heterogeneity of financial assets are analyzed. The results show an "inverted U-shaped" correlation between financial asset allocations and the digital transformation of enterprises. The short-term financial assets provide a "reservoir" for the application of digital technology, while the long-term financial assets cause a crowding-out effect. Moreover, economic policy uncertainty exerts a moderating effect and enhances the positive impact of financial asset allocations on digital transformation.