Publication: The Impact Of Managerial Ability On Debt Financing Constraints Of Chinese Firms: The Moderating Effect Of Digital Transformation
Date
2025-09
Authors
Su, Xinyi
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
In the context of China's escalating economic uncertainty and rapid digitalization, this study draws upon Signaling Theory and Resource Dependency Theory to investigate the impact of managerial ability on corporate debt financing constraints. This study further examines the moderating role of digital transformation in this relationship. The analysis employs a panel dataset of 4,151 Chinese A-share listed firms from 2011 to 2023, comprising 30,611 firm-year observations. The results show that managerial ability significantly alleviates corporate debt financing constraints, supporting the view that highly capable CEOs serve as a positive signal to creditors. Moreover, this effect is more pronounced for firms with a higher degree of digital transformation, indicating that digital transformation amplifies the signaling role of managerial ability. This study contributes to the literature on corporate debt finance by highlighting the importance of attracting highly capable managerial talent and accelerating digital transformation. Both carry important practical implications for enabling Chinese firms to proactively mitigate debt financing constraints.
Description
Keywords
The Impact Of Managerial Ability On Debt Financing Constraints Of Chinese Firms , The Moderating Effect Of Digital Transformation