The Digital Inclusive Finance and Investment Efficiency of Enterprises: Evidence from Perspective of Financialization

Zixuan Feng

doi:10.54254/2754-1169/4/2022950

Research Article

Open access

Published on 21 March 2023

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Feng,Z. (2023). The Digital Inclusive Finance and Investment Efficiency of Enterprises: Evidence from Perspective of Financialization. Advances in Economics, Management and Political Sciences,4,527-537.

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The Digital Inclusive Finance and Investment Efficiency of Enterprises: Evidence from Perspective of Financialization

Zixuan Feng *^,1,

¹ Southwestern University of Finance and Economics, Chengdu 611130, China

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/4/2022950

Abstract

Digital inclusive finance, a byproduct of traditional banking and digital technology, has a substantial effect on the financial standing of businesses. Using information from Chinese A-share listed firms between 2011 and 2018, this paper empirically investigates the connection between the emergence of digital financial inclusion and investment efficiency and financialization of real enterprises, as well as their underlying mechanisms. The results show that digital financial inclusion rises a suppressive effect on the investment efficiency of enterprises. Further, this effect is influenced by other control factors. The mechanism test shows that digital financial inclusion enhances the process of financialization of corporations. Findings of this paper help clarify the mechanism of the role of digital inclusive finance. Based on the empirical findings, this paper recommends controlling the unrestricted promotion of digital inclusive finance but encouraging balanced expand.

Keywords

financialization, investment efficiency, corporate finance, digital financial inclusion

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About volume

Volume title: Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅱ

Conference website: https://www.icemgd.org/

ISBN：978-1-915371-17-1(Print) / 978-1-915371-18-8(Online)

Conference date: 6 August 2022

Editor：Canh Thien Dang, Javier Cifuentes-Faura

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.4

ISSN：2754-1169(Print) / 2754-1177(Online)

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