Abstract:      Under the background that the government is vigorously developing the digital economy but the digital transformation of Chinese enterprises is progressing slowly, it is of great significance to clarify the factors hindering the digital transformation and explore possible solutions. Taking Shanghai-Shenzhen A-share listed firms from 2008 to 2020 as a sample, this paper used the mediator effect model to investigate the impact of population aging on enterprises′ digital transformation and the mechanism behind it. The results suggested that population aging has a dampening effect on the digital transformation of enterprises. After using instrumental variable method, difference-in-differences method under the propensity score matching and dynamic panel model to alleviate the potential endogenous problems, the research conclusion is still hold true. The mechanism tests found that population aging impedes corporate digital transformation by reducing the capacity for digital technology innovation, reducing digital transformation subsidies, and increasing excess tax burden. The heterogeneity analysis showed that the dampening effect of population ageing on digital transformation is mainly found in SMEs and non-state-owned firms, but this negative effect can be attenuated by increasing the level of intellectual property protection and increasing the level of competition in the banking sector. This paper has theoretically enriched the research related to the influencing factors of digital transformation and the economic effects of population aging. In practice, this paper will not only provide decision-making references for mitigating the adverse consequences of population aging, but also bring positive inspirations for promoting the digital transformation of Chinese enterprises.

Key words: population aging, digital transformation, technological innovation, government subsidy, excess tax burden