Proceedings of the International Conference on Financial Innovation, FinTech and Information Technology, FFIT 2022, October 28-30, 2022, Shenzhen, China

Research Article

The Depth Usage of Technology Big Data and Enterprises’ Inefficient Investment: An Empirical Evidence

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  • @INPROCEEDINGS{10.4108/eai.28-10-2022.2328435,
        author={Shexuan  Xu},
        title={The Depth Usage of Technology Big Data and Enterprises’ Inefficient Investment: An Empirical Evidence},
        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; enterprises’ inefficient investment; empirical research},
        doi={10.4108/eai.28-10-2022.2328435}
    }
    
  • Shexuan Xu
    Year: 2023
    The Depth Usage of Technology Big Data and Enterprises’ Inefficient Investment: An Empirical Evidence
    FFIT
    EAI
    DOI: 10.4108/eai.28-10-2022.2328435
Shexuan Xu1,*
  • 1: Accounting and Finance Strathclyde University Glasgow
*Contact email: shexuan.xu.2020@uni.strath.ac.uk

Abstract

The rapid growth of digital technology and inclusive finance in the Chinese has filled the coverage gaps of traditional financial institutions. This paper explores the relationship between the extent of digital finance use and the ineffectiveness of business investment. Empirical evidence detailed illustrates that the extent of digital finance reduces the effectiveness of the investment. On average, an increase of 1 unit in the depth of digital finance will increase the ineffective level of investment by 0.48 units. Furthermore, analysis of heterogeneity shows that digital finance has a greater influence on the effectiveness of corporate investments. The research of this paper shows that we should prevent the excessive financialization of enterprises from affecting investment efficiency and make the real economy operate in a reasonable range. According to the empirical results, this paper suggests that policymakers should pay due attention to the negative effects of digital finance while promoting the development of the digital economy to avoid inefficient investment caused by excessive financialization.