Synapse
⌘+K
Synapse
PulseExploreClubsResearchersJournals
Instagram
HomeClubsExplore
August 16, 2026Advanced ElectromagneticsOpen Access

Does Digital Finance Fuel Corporate Financialization? Evidence from China’s Real Sector and Its Implications for Sustainable Development

View Full Paper
Ask AI
Bookmark
Share

Authors

TWT. X. WangAnhui University of Finance and Economics

Discussion

Loading...

Member takes

Overview

Panel study reveals digital finance increases financial asset allocation in Chinese non-financial firms, suggesting risks to sustainable real-economy growth.

Key Points

  • To assess whether the expansion of digital finance accelerates corporate financial asset investment among real-sector firms in China and examine its implications for sustainable development.
  • Analyzed panel data from Chinese A-share listed non-financial enterprises spanning 2011 to 2023.
  • Estimated relationships using a two-way fixed-effects model, measuring digital finance via the Peking University Digital Inclusive Finance Index and financialization via the financial-to-total assets ratio.
  • Digital finance significantly increased financial asset allocation and accelerated over-financialization in real-sector firms, with stronger effects in non-technology-intensive firms, non-polluting industries, and enterprises led by CEOs without financial backgrounds.
  • Mechanism analysis revealed that digital finance eased financing constraints and reduced financial leverage to expand financial asset investment, which subsequently weakened core operating performance.

Cite This Study

T. X. Wang (2026) studied this question.

synapsesocial.com/papers/6a817980f2fb91fc834acacbhttps://doi.org/10.7716/aem.v15i3.3437
View Full Paper
Ask AI
Bookmark
Share

Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1The digital economy and corporate financialization: evidence from China2026
  2. 2Research on the Impact of Digitalization on the Financialization of the Real Economy from the Perspective of Digital China2025
  3. 3Digital Finance and Corporate Social Responsibility: Empirical Evidence from Listed Companies in China2024
  4. 4The impact of digital financial development on corporate leverage ratio: The case of a-share listed non-financial enterprises in China’s Shanghai and Shenzhen stock exchanges2024 · 3 citations
  5. 5Can digital finance improve corporate performance? Evidence from China2025 · 1 citations