Digital Transformation, Key Audit Matters and Financing Constraints: Evidence from China
DOI:
https://doi.org/10.21834/e-bpj.v10i31.6595Keywords:
Digital Transformation, Financing Constraints, Key Audit MattersAbstract
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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Copyright (c) 2025 Minsi Lin, Fazlida Binti Mohd Razali, Razana Juhaida Binti Johari, Nur Syuhada Jasni, Zujun Liu
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