Digital Transformation and Enterprise Outward Foreign Direct Investment

This research empirically investigates the influence of digital transformation on firms' outward foreign direct investment (OFDI), utilizing data from A-share listed companies in Shanghai and Shenzhen from 2009 to 2022. The results indicate that digital transformation notably enhances OFDI. Robustness tests further confirm the dependability and relevance of the study's findings. This effect is particularly evident in state-owned enterprises, companies operating in fiercely competitive industries, and executives with international backgrounds. Mechanism analysis suggests that digital transformation drives OFDI by reducing overseas operational costs and enhancing technological innovation capabilities.