Research on the Impact of Peer Effects of Digital Transformation on Corporate OFDI

The rapid advancement of digital technology is profoundly reshaping enterprises' participation in international competition and has become a key driver of outward foreign direct investment (OFDI) by Chinese firms. Using data from A-share listed companies in China from 2013 to 2022, this paper investigates the impact of peer effects in digital transformation on corporate OFDI. The results show that digital practices of peer firms within the same industry significantly increase the focal firm's probability of making OFDI decisions and the scale of investments, and these findings remain robust after instrumental variable estimation and multiple robustness tests. Heterogeneity analysis indicates that the effect is more pronounced among non-state-owned enterprises and medium-low technology firms, owing to their stronger incentives to follow competitors and needs for risk aversion. Mechanism analysis reveals that alleviating financing constraints and enhancing innovation capabilities are important pathways through which the peer effects promote OFDI. Moreover, agency costs positively moderate this relationship, as better governance structures enable firms to more effectively convert external digital signals into overseas expansion actions. This study offers theoretical insights and policy implications for facilitating both enterprise digital transformation and the high-quality development of OFDI.