Does digital transformation in enterprises reduce debt default risk?

With the rapid advancement of digital technology, the digital transformation of enterprises has become essential for enhancing competitiveness and achieving sustainable development. This paper aims to systematically examine the impact of digital transformation on debt default risk, using A-share listed companies from 2010 to 2022 as the research sample. The findings indicate that digital transformation significantly reduces the risk of debt default, and this conclusion is supported by a series of robustness tests. Heterogeneity analysis based on firm-specific characteristics reveals that companies with higher returns on assets, higher R&D investment, larger scale, higher debt-to-asset ratio, greater regional social trust, and higher information transparency experience a more pronounced risk mitigation effect from digital transformation. Mechanism tests demonstrate that digital transformation primarily lowers debt default risk through two channels: alleviating financing constraints and improving total factor productivity. Digital transformation more effectively reduces corporate debt default risk through foundational technologies compared to practical applications. These conclusions contribute to a deeper understanding of how digital transformation drives high-quality development in enterprises and provide a comprehensive assessment of the implementation effects of digital transformation.