Work

Short selling and enterprise digital Transformation-A quasi-natural experiment based on financing and funding in China

Year: 2025

Type: article

Abstract: Short selling is an important transformation in China's capital market, which has brought the profound impact on the enterprise digital transformation. Taking the sample of China’s A-share listed companies over the period of 2007-2022, it is found that the positive effect of short selling on the enterprise digital transformation by constructing the difference-in-differences model. This paper also explored the absorption capacity and the management equity incentive which have the positive moderating effect on the relationship between the short selling and the enterprise digital transformation. The paper shows that the internal resource is the important supportive force for enterprises to carry out the digital transformation, and the incentive strength of the senior management team promotes the development of the enterprise. Further analysis shows that short selling has a positive effect on the enterprise digital transformation in both state-owned and non-state-owned enterprises, which indicates that short selling has a certain universality to the enterprise digital transformation. The findings suggest that short selling has a sustainable economic impact on the enterprise digital transformation.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2025.104308

Authors: Haomin Zhang, Jing Song, Yu Song, Haixia Mai

Institutions: Shanghai Business School, Xi'an Polytechnic University

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,930