Research on Digital Transformation and Enterprise Financial Asset Allocation Strategy

Abstract

This research investigates the relationship between financial asset allocation and digital transformation in Chinese firms, focusing on how both short-term and long-term asset allocations influence digitalization efforts. In an era of increasing digital adoption, aligning financial resources with digital transformation goals is essential for business success. Through regression analysis, the study explores the impact of financial asset allocation on digital transformation initiatives. The findings reveal that short-term asset allocation plays a key role in supporting digital transformation, with moderate levels promoting progress, while excessive short-term allocations may limit transformation, as shown by the non-linear relationship identified through the quadratic model. Additionally, the study shows that economic policy uncertainty magnifies the positive effects of short-term asset allocation, suggesting that firms with greater short-term assets are better positioned to invest in digital technologies during periods of economic instability. These insights provide guidance for business leaders and policymakers seeking to develop financial strategies that enhance digital innovation.