Public-Health-Emergency,Enterprise Risk Management(ERM) And Digital Transformation

At present,China has entered a new stage of development,the importance of technology-driven digital economy in China’s strategic layout has gradually increased,and the digital level of enterprises has gradually improved.But at the same time,the arrival of COVID-19 has a wide impact on the business operation of Chinese enterprises.This paper takes the COVID-19 as an example to explore the impact of public health emergencies on enterprise activities.Taking the A-share listed private enterprises in Shanghai and Shenzhen from 2007 to 2021 as a research sample,this paper uses the industry-region fixed effect model to examine the impact of the epidemic and enterprise risk management(ERM)on the digital transformation of enterprises,as well as the regulatory role of ERM in it.The study found that the impact of the epidemic has significantly increased the degree of digital transformation of enterprises,but the effect is regulated by the level of ERM,and high-level ERM projects will weaken the digital transformation implemented by enterprises in response to the epidemic.There is heterogeneity in the impact of the pandemic and ERM on the digital transformation of enterprises.When digital transformation is divided into two categories: underlying digital technology development and digital technology application,the epidemic has a greater role in promoting the development of underlying digital technology,while the ERM level of enterprises has a stronger inhibition effect on the application of digital technology under the epidemic;In high-tech enterprises,or enterprises with low technology levels in their regions,the role of the epidemic in promoting digital transformation is more prominent,but this relationship is also strongly negatively affected by the ERM level of enterprises;The degree of digital transformation of manufacturing enterprises is more affected by the epidemic than that of non-manufacturing enterprises,and the ERM level in non-manufacturing enterprises has a greater inhibitory effect on the relationship between epidemic and digital transformation;Under the epidemic,erm level has significantly inhibited the digital transformation of enterprises in the mature and declining periods,but has no significant effect on enterprises in the growth stage.This paper verifies for the first time the impact of the epidemic and ERM on the digital transformation of private enterprises,and analyzes the mechanisms involved.The research results of this paper are helpful to understand the mechanism of digital transformation of private enterprises and have guiding significance for private enterprises to promote digital transformation.