The Impact of the Development of Digital Finance on the Risk of Corporate Debt Financing

Shuangjun Wu

doi:10.54097/gk4kza95

Authors

Shuangjun Wu

DOI:

https://doi.org/10.54097/gk4kza95

Keywords:

Digital finance, Debt financing costs, Fixed effects model.

Abstract

This investigation evaluates the association between the evolution of digital finance and the risk associated with corporate debt financing among Chinese A-share listed companies from 2012 to 2022. The research identifies a significant reduction in debt financing costs as a consequence of advancements in digital finance, although these benefits are not uniformly distributed geographically. The study provides a nuanced perspective on how digital finance development can be strategically leveraged to alleviate financing issues faced by SMEs. Highlighting the influence of regional economic disparities, the paper offers actionable insights for policymakers and stakeholders in the digital finance ecosystem, advocating for the enhancement of digital finance as a catalyst for economic development and SME support.

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