Does Digital Transformation Enhance Corporate Risk-Taking?: Evidence from China

Corporate risk-taking, as an essential factor in corporation development, is influenced by the enterprise's strategic decision-making. Today, with the rapid development of science and technology, digital technology has a profound effect on the whole society and enterprises. Then, one question is proposed: how should enterprises make strate-gic decisions to deal with the current opportunities and challenges, enhance their own corporate risk-taking, and then achieve high-quality development? We collected the data from companies listed on China's Shenzhen Stock Exchange and Shanghai Stock Exchange from zo1o to zozo. Starting from the corporate risk-taking perspective, we conducted an empirical analysis to validate the relationship between digital transformation of corporations and corporate risk-taking. We found that digital transformation of corporations enhanced corporate risk-taking. The enhanced effect was realized as digital trans-formation improved the information disclosure quality and asset utilization. The enhanced effect was even greater if the enterprise occupied a less favorable competi-tive position or received less media attention. This paper reviews the literature con-cerning economic consequences of enterprise digital transformation, shed new light on the enterprise's selection of digital strategies to achieve sustainable development, and guides the digital transformation of an enterprise.