Abstract:In the era of digital economy, improving the efficiency of enterprise capital allocation through digital transformation has become an important path for high-quality development of enterprises. However, the existing literature on the impact of digital transformation on corporate capital allocation efficiency and its mechanism is insufficient, especially the lack of relevant empirical evidence. This paper believes that, with the deepening of digital transformation, the efficiency of capital allocation of enterprises can be improved through mechanisms such as reducing the degree of information asymmetry, alleviating agency problems, and easing corporate financing constraints, and the efficiency improvement effect of capital allocation will show diversified enterprise heterogeneity due to different R&D intensity, financial process, bank enterprise relationship, life cycle and scale of enterprises. This paper takes the A-share listed companies in Shanghai and Shenzhen from 2007 to 2020 as a sample to systematically investigate the impact of digital transformation on the efficiency of corporate capital allocation. The research finds that digital transformation has significantly and steadily improved the capital allocation efficiency of enterprises; Mechanism test shows that digital transformation can improve the efficiency of enterprise capital allocation by reducing the degree of information asymmetry, easing agency problems and financing constraints; Relatively speaking, digital transformation has a stronger role in improving the efficiency of capital allocation for enterprises with high R&D intensity, high degree of enterprise financialization, low bank enterprise affiliated enterprises, and enterprises in growth stage and small and medium-sized enterprises. Further research shows that digital transformation can enable enterprises to achieve new value creation, improve enterprise performance and achieve high-quality development through creative resource arrangement. Compared with the existing literature, this paper mainly expands and improves as follows: Firstly, it expands the economic effects of digital transformation from the perspective of enterprise capital allocation efficiency; the secondly it deeply analyzes the mechanism of digital transformation affecting the efficiency of corporate capital allocation. This study shows that digital transformation has significantly improved the efficiency of enterprise capital allocation. Therefore, enterprises need to build a platform with digital competitiveness. Through the digital platform, data resources of various decentralized business applications can be gathered together, providing the possibility for centralized and efficient data analysis, helping management actively implement scientific investment decision-making, and effectively reducing agency problems and financing constraints of enterprises, so as to give full play to the capital allocation efficiency promotion effect of digital transformation.