With　the　aim　of　exploring　how　digital　transformation　impacts　enterprise　development　in　China,　this　study　takes　Chinese　A-share　listed　enterprises　from　2007　to　2020　as　the　research　sample　and　constructs　a　digital　transformation　index　and　an　enterprise　development　index.　The　impact　of　digital　transformation　on　enterprise　development　and　its　mechanisms　are　investigated.　The　empirical　results　show　the　following　findings.　First,　digital　transformation　can　significantly　promote　enterprise　development.　Second,　the　effect　of　digital　transformation　on　enterprise　development　is　stronger　in　enterprises　located　in　inland　regions　compared　to　in　coastal　regions　and　is　more　powerful　in　enterprises　with　high　levels　of　development　than　in　those　lagging　in　development.　Third,　digital　transformation　can　benefit　enterprise　development　by　alleviating　financing　constraints,　effectively　reducing　business　risks　and　driving　technological　innovation.　Fourth,　China＇s　economic　policy　uncertainty　is　an　important　external　factor　weakening　the　role　of　digital　transformation　in　driving　enterprise　development.