Abstract:Will the digital transformation of firms be affected by policy uncertainty? This paper investigates the mechanisms by which policy uncertainty affects corporate digital transformation behavior through a theoretical model. Based on this, this paper uses the data of China’s A-share listed companies to conduct an empirical study on the relationship between policy uncertainty measured by local government official changes and corporate digital transformation. The results show that the increase in policy uncertainty can significantly impede the process of digital transformation. In addition, the relationship between policy uncertainty and digital transformation is moderated by the professional background of officials and corporate financial constraints. This paper provides evidence for better driving the digital transformation of Chinese firms.