Study on the Impact of Enterprise Digital Transformation on Working Capital Management Efficiency: Evidence from Leading Enterprises in the Electronic Equipment Manufacturing Industry
Main Article Content
Keywords
digital transformation, working capital management, cash conversion cycle, heterogeneity, inventory management
Abstract
This study takes 30 Chinese A-share listed companies from 2020 to 2024 as samples to empirically examine the impact of digital transformation on working capital management efficiency and its boundary conditions. The findings reveal that: overall, digital transformation significantly shortens the cash conversion cycle and improves working capital efficiency. Mechanism analysis shows that the efficiency improvement mainly stems from the in-depth optimization of inventory management, but it is accompanied by a significant extension of the accounts receivable cycle, forming a mixed path characterized by "inventory reduction" and "slower receivables collection". Heterogeneity analysis indicates that this positive effect is concentrated in private enterprises, while a "digital efficiency paradox" emerges in state-owned enterprises (SOEs) — digital transformation may instead prolong the inventory turnover cycle. In addition, enterprises with high financing constraints tend to adopt more thorough digital strategies. This study uncovers the complexity and context dependence of digital transformation’s impact on working capital efficiency, providing theoretical basis and empirical evidence for enterprises to formulate differentiated transformation strategies and for the government to implement targeted policies. It is suggested that the government should pay more attention to the assessment of operational indicators such as cash conversion cycle and inventory turnover rate when promoting the digital transformation of SOEs, while providing digital tool support and financing convenience for private enterprises.
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