Research Article
The Impact of Financial Technology Reform on Corporates’ Growth: Evidence from Panel Data Regression
@INPROCEEDINGS{10.4108/eai.28-10-2022.2328433, author={Jiarui Chu and Zunyao Wang and Qian Xu}, title={The Impact of Financial Technology Reform on Corporates’ Growth: Evidence from Panel Data Regression}, proceedings={Proceedings of the International Conference on Financial Innovation, FinTech and Information Technology, FFIT 2022, October 28-30, 2022, Shenzhen, China}, publisher={EAI}, proceedings_a={FFIT}, year={2023}, month={4}, keywords={digital finance corporates’ growth empirical evidence}, doi={10.4108/eai.28-10-2022.2328433} }- Jiarui Chu
Zunyao Wang
Qian Xu
Year: 2023
The Impact of Financial Technology Reform on Corporates’ Growth: Evidence from Panel Data Regression
FFIT
EAI
DOI: 10.4108/eai.28-10-2022.2328433
Abstract
In China, the problem of difficulty in financing restricts the growth of many enterprises and the development of digital finance may have a positive impact on this phenomenon. This paper aims to explore the relationship between the coverage breadth of digital finance and enterprise growth with the model of OLS and panel fixed-effect estimation. After adding control variables, the result indicates that there is a positive correlation between these two variables, that is, an increase in coverage breadth of digital finance can promote the growth of enterprises. Through heterogeneity analysis, we find that digital finance’s impact on different scales of enterprises has a significant variance. Compared with large enterprises, the increase in coverage breadth seems to be more conducive to the growth of small and medium-sized enterprises. Finally, our research has a policy implication that with the purpose of continuous enterprise growth, the regulators in the financial sector should provide incentives to increase the coverage breadth of digital finance.