Business

Digital financial development and inefficient investment: a study based on the dual perspectives of resource and governance effects

L. Xue, J. Dong, et al.

This empirical study by Liuyang Xue, Junan Dong, and Shiyao Jiang reveals how digital finance plays a crucial role in reducing inefficient investments in Chinese non-financial firms. Notably, it shows that this impact is especially significant in non-state firms and regions with robust institutional frameworks. Explore how digital finance not only minimizes wasteful expenditures but also enhances overall investment levels!

00:00

~3 min • Beginner • English

Index

Abstract

As one of the most crucial domains within the digital economy, digital finance has garnered significant attention due to its impact on firms. This study empirically examines the influence of digital finance on inefficient investment, using a sample of Chinese non-financial firms from 2011 to 2019. Results show that digital finance effectively mitigates firm inefficient investment, with a more pronounced effect observed in non-state firms and those operating in regions with higher levels of institutional development. Mechanism analysis demonstrates that digital finance mitigates inefficient investment through resource and governance effects. Further analysis shows that the breadth of coverage, use depth, and digital support services of digital finance all contribute to reducing inefficient investment. Moreover, digital finance enhances the willingness and ability of firms to invest and improves their overall investment levels. These results provide evidence for the positive impact of digital finance in mitigating inefficient investment.

Publisher

Humanities and Social Sciences Communications

Published On

Jan 01, 2024

Authors

Liuyang Xue, Junan Dong, Shiyao Jiang

DOI

https://doi.org/https://doi.org/10.1057/s41599-023-02411-5

Related Publications

Explore these studies to deepen your understanding of the subject.

Business

Bridging the financial divide: a bibliometric analysis on the role of digital financial services within FinTech in enhancing financial inclusion and economic development

M. Afjal

Psychology

Neuroimaging the effects of smartphone (over-)use on brain function and structure—a review on the current state of MRI-based findings and a roadmap for future research

C. Montag and B. Becker

Biology

Neuroimaging the effects of smartphone (over-)use on brain function and structure-a review on the current state of MRI-based findings and a roadmap for future research

C. Montag and B. Becker

Medicine and Health

Development of prediction models for screening depression and anxiety using smartphone and wearable-based digital phenotyping: protocol for the Smartphone and Wearable Assessment for Real-Time Screening of Depression and Anxiety (SWARTS-DA) observational study in Korea

Y. Shin, A. Y. Kim, et al.

Listen, Learn & Level Up

Over 10,000 hours of research content in 25+ fields, available in 12+ languages.

No more digging through PDFs, just hit play and absorb the world's latest research in your language, on your time.

listen to research audio papers with researchbunny