How the local business environment shapes the relationship between digital transformation and corporate risk taking

作者：Do Vu Phuong Anh, Tuyen Quang Bui, Mai Phuong Nguyen, Vui Van Tran · 发表于：Discover Sustainability · 年份：2026 · DOI：10.1007/s43621-026-03730-8

This study examines how digital transformation (DT) influences corporate risk taking in an emerging economy characterized by uneven institutional quality. While prior research highlights the governance benefits of digitalization, less is known about how these effects vary across firms with different risk profiles and local institutional conditions. This study addresses this gap by analyzing the heterogeneous impact of DT on corporate risk taking in Vietnam, with particular attention to the moderating roles of informal costs and compliance pressure. Using firm level data from the Ho Chi Minh and Hanoi Stock Exchanges over the period 2016 to 2022, the analysis employs an instrumental variable quantile regression approach to address endogeneity and capture distributional heterogeneity. The results show that the effect of DT differs across the risk distribution: it is weak or slightly positive at lower quantiles but becomes negative and significant at higher quantiles, suggesting that DT constrains excessive risk among riskier firms. Under stronger compliance pressure, however, DT may temporarily increase risk as firms adjust, experiment, and signal legitimacy. These findings indicate that the risk mitigating role of digital transformation depends critically on the surrounding institutional environment. From a policy perspective, promoting digitalization should be complemented by reforms that reduce compliance burdens and strengthen formal governance.