How Does Digital Finance Affect the Burden of Real Enterprises: Evidence from China
DOI:
https://doi.org/10.54097/hbem.v9i.9239Keywords:
Digital Finance; Enterprise Development; Financial Investment; Economic Growth and Inhibition.Abstract
By mainly studying how digital finance affects the burden of real enterprises, this paper utilizes the two-way fixed effect model to test whether the burden of industrial enterprises above the designated size can be largely reduced by digital finance. The following results are found: (1) Digital finance can generally reduce the cost ratio by a large margin. (2) The breadth and depth of digital finance enable a positively significant influence on decreasing the cost rate of enterprises, but the degree of digitalization is the opposite. (3) Among the eastern, central, and western regions in China, only the industrial enterprises above the designated size in the eastern regions are significantly affected by digital finance, which reduces their cost ratio. On this premise, this paper aims to leverage the advantages of digital finance to help related industries and enterprises as well as strengthen regional synergy. Besides, relevant government departments need to provide suggestions on digital financial supervision and innovation assistance. This paper offers a reference that makes a difference for the research pertinent to digital finance.
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