Research on the Impact of Institutional Investors’ Shareholding on Enterprise Digital Transformation

In the context of digital economy, digital transformation is of great significance for enterprises to achieve high-quality development. The extent of enterprise digital transformation primarily relies on the strategic decisions made by management. Institutional investors are important participants in corporate governance and may influence management’s strategic decisions on enterprise digitalization. Taking the A-share manufacturing listed companies in Shanghai and Shenzhen from 2012 to 2022 as the research sample, this paper empirically tests the impact of institutional investors’ shareholding on the digital transformation of enterprises. The research finds that institutional investors’ shareholding can significantly promote the digital transformation of enterprises, and the research conclusion is still valid after robustness test. The mechanism test shows that institutional investors’ shareholding can promote corporate digital transformation by alleviating corporate financing constraints. Heterogeneity analysis finds that the promotion effect of institutional investors’ shareholding on enterprises’ digital transformation is mainly reflected in non-state-owned enterprises and industries with fierce competition. This study enriches the research on the governance effect of institutional investors and the influencing factors of enterprise digital transformation and can provide some reference for institutional investors to participate in corporate governance and enterprises to promote the process of digital transformation.