Digital Transformation, Key Audit Matters and Financing Constraints: Evidence from China

Authors

  • Minsi Lin Accounting Research Institute (HICoE), Universiti Teknologi MARA, Malaysia & School of Economics and Management, Minjiang University, China
  • Fazlida Binti Mohd Razali Accounting Research Institute (HICoE), Universiti Teknologi MARA, Malaysia
  • Razana Juhaida Binti Johari Faculty of Accountancy, Universiti Teknologi MARA, Malaysia
  • Nur Syuhada Jasni Faculty of Accountancy, Universiti Teknologi MARA, Malaysia
  • Zujun Liu School of Economics and Management, Minjiang University, China

DOI:

https://doi.org/10.21834/e-bpj.v10i31.6595

Keywords:

Digital Transformation, Financing Constraints, Key Audit Matters

Abstract

This study aimed to empirically test the impact and mechanisms of digital transformation on financing constraints following the implementation of new auditing standards in China. The study uses a panel dataset of 21,290 non-financial A-share firms from 2017 to 2022. Through multiple regression analysis, the research finds that digital transformation and key audit matters (KAMs) disclosures help alleviate financing constraints. Digital transformation significantly increases KAMs disclosures, partially mediating its effect on financing constraints. The findings contribute to the literature on the economic consequences of digital transformation and the effectiveness of revised audit standards.

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Published

2025-01-31

How to Cite

Lin, M., Binti Mohd Razali, F., Juhaida Binti Johari, R., Jasni, N. S., & Liu, Z. (2025). Digital Transformation, Key Audit Matters and Financing Constraints: Evidence from China. Environment-Behaviour Proceedings Journal, 10(31), 171–177. https://doi.org/10.21834/e-bpj.v10i31.6595