Analysis of the Situation of Corporate Financial Behaviors in the Context of Digital Economy - Based on Chinese Non-financial A-share Listed Companies
DOI:
https://doi.org/10.54097/4f3beq20Keywords:
Corporate Financial Behaviors, digital economy, corporates of different natures and sizes.Abstract
The digital economy is rapidly advancing, penetrating enterprises and influencing their behavior. To investigate how digital finance affects the financial investment decisions of enterprises, based on the panel data of Chinese A-share listed companies between 2011 and 2020, this paper uses a robust two-way fixed-effects econometric model to explore the impact of digital finance on corporate financialization and the heterogeneity of the impact within corporates of different natures and sizes. The findings reveal that digital finance significantly inhibits corporate financialization, with a more pronounced effect observed in nationalized and large-scale enterprises. Therefore, it is imperative for the government to enhance supervision and management of enterprises, as well as encourage and guide them to strengthen their digital finance capabilities to fully harness its potential.
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