Digital Transformation of Commercial Banks, Risk-Taking, and the Short-Term Borrowing and Long-Term Utilization by Technology-based SMEs
DOI:
https://doi.org/10.54097/2w0wcz33Keywords:
Digital Transformation of Commercial Banks, Short-term Debt for Long-term Use, Risk-taking, ESG Performance, Theory of Liquidity CreationAbstract
Under the context of a strong science and technology nation, SMEs face difficulties in meeting banks' long-term credit review standards due to their relatively small scale and single profit model, leading to a severe phenomenon of using short-term debt for long-term purposes. A disruption in the funding chain can severely impact the innovation drive and vitality of these enterprises, hinder the cultivation of high-tech enterprises, and affect the transformation of China's economy towards high-quality development. The Third Plenary Session of the 20th CPC Central Committee proposed establishing a technology finance system that aligns with scientific and technological innovation, emphasizing enhanced financial support for national major S&T tasks and small and medium-sized technology enterprises, and improving policies supporting long-term capital investment in early-stage, small-scale, long-term, and hard S&T ventures. It is significant to explore whether and how the digital transformation of commercial banks can curb the practice of using short-term debt for long-term purposes among small and medium-sized technology enterprises. Based on panel data from Growth Enterprise Market companies between 2017-2021, this paper constructs a two-way fixed-effects model to investigate the impact and implementation paths of commercial banks' digital transformation on such enterprises' use of short-term debt for long-term purposes. The results indicate that the digital transformation of commercial banks indirectly curbs this practice by enhancing proactive risk-taking before lending, and its effectiveness is moderated by the ESG performance of small and medium-sized technology enterprises. The findings provide empirical insights for alleviating financing difficulties for small and medium-sized technology enterprises and addressing mismatches in investment and financing term structures for commercial banks; they also offer policy references for accelerating the realization of high-level S&T self-reliance and comprehensive green transformation of economic and social development.
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