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.