In the process of the accelerated evolution of the modern economic system, technology finance is constantly injecting momentum into the digital transformation of industrial enterprises. Using the panel data of Chinese industrial firms listed between 2013 and 2022, this paper examines the impact of technology finance on digital transformation and analyzes the mechanism of their influence. The empirical result shows that technology finance drives digital transformation by reducing corporate equity concentration, enhancing risk-bearing capacity, and reducing internal management costs. Among these factors, equity concentration has the most significant mediating effect, while the role of financing constraints is relatively limited, mainly manifesting as basic support conditions. Commercial credit can promote the enabling effect of technology finance to accelerate the digital transformation of industrial enterprises. In addition, the empowering effect of technology finance is more pronounced in the eastern coastal and central regions, as well as in pilot areas that combine technology and finance. Nonstate-owned enterprises, small and medium-sized enterprises and labor-intensive enterprises all benefit more from technology financing than their counterparts do. These findings have important implications for accelerating the digital transformation of industrial enterprises and promoting the development of technology finance services.
Pan et al. (2026) studied this question.