How Does Digital Risk Exposure Affect Corporate Debt Structure in China? Further Analysis on Debt Default Risk

The digital economy’s continued expansion not only brings opportunities to enterprises but also exposes them to increasingly prominent digital risks, while evidence regarding how digital risk exposure shapes corporate debt structure is still scarce. Using a sample of Chinese A-share listed companies from 2010 to 2024, this paper analyzes the effects of digital risk exposure (DRE) on corporate debt structure and debt default risk. Baseline estimates show that digital risk exposure is associated with a lower long-term debt ratio, with this association more pronounced among non-high-tech firms. Further analysis shows a negative association between digital risk exposure and corporate debt default risk. This paper broadens existing research into the drivers of corporate debt default risk by treating digital risk exposure as a distinct explanatory dimension and provides empirical evidence and practical implications for firms seeking to manage digital uncertainty and prevent debt risk.