Research On The Impact Of Digital Inclusive Finance On The Profitability Of GEM Companies

The profitability of most GEM companies will decline to varying degrees after listing.Unstable profitability not only restricts the healthy development of the company itself,but also adversely affects the high-quality development of my country’s securities market and economy.There are many factors that affect the profitability of Chi Next companies,but most of them are small and medium-sized enterprises.The characteristics of high growth and high risk of production and operation activities make the traditional financial system unable to provide them with sufficient financial service support.This is an important reason.The digital inclusive finance that combines technology and financial services can effectively solve the problem of information asymmetry between the financial needs of GEM enterprises and the supply of financial services,and deliver financial services to enterprises through digital technology,reducing financial service costs and expanding financing channels,providing a new path for improving the profitability of GEM companies.Based on the analysis of information asymmetry theory and financing constraints related theories,it is concluded that digital inclusive finance can effectively improve the profitability of GEM companies.That is,digital inclusive finance can reduce information asymmetry and ease financing constraints.Improve the profitability of GEM companies.Digital inclusive finance reduces the degree of information asymmetry by integrating and analyzing the internal and external information of enterprises,and improves the profitability of Chi Next enterprises by improving the financing structure and marketization level,and reducing the financing cost and leverage level of enterprises to ease the degree of financing constraints.Through the comparative analysis of the 2011-2020 provincial digital financial inclusion index and the three dimensions of coverage breadth,depth of use and degree of digitization and the overall rate of return of GEM companies,it is found that digital inclusive finance can break through the bottleneck of traditional financial technology.Broaden the scope of financial services,reduce information asymmetry and reduce the cost of financial services,broaden financing channels,and provide sufficient financial support for the daily business activities of GEM companies to enhance their profitability.The panel data from 2011 to 2020 of China’s GEM companies is selected,and the provincial digital financial inclusion index released by the Digital Finance Research Center of Peking University is used.,using the return on total assets to measure the profitability of GEM companies as the explained variable,using the degree of information asymmetry and the financing constraint index as intermediary variables,and establishing a two-way fixed-effect model to demonstrate the impact of digital financial inclusion on the profitability of GEM companies.The analysis shows that:(1)the higher the development level of digital inclusive finance,the stronger the profitability of GEM companies,and digital inclusive finance can significantly improve the profitability of GEM companies;(2)digital inclusive finance can alleviate the internal and external information of enterprises by reducing Asymmetric,improve the internal management of enterprises,attract external financial support,and improve the profitability of GEM enterprises;(3)Digital inclusive finance reduces the financing cost and leverage level of enterprises by improving the financing structure and marketization level,and relieves the financing constraints of GEM enterprises.,to provide sufficient financial support for financing activities,thereby enhancing their profitability;(4)The impact of digital inclusive finance on the profitability of entrepreneurial enterprises in regions with different economic development levels is different,and the impact on the eastern region is more significant;(5)The impact of digital inclusive finance on the profitability of GEM companies with different ownerships is different,and the impact on non-state-owned GEM companies is more prominent.Suggestions for digital inclusive finance to promote the profitability of GEM companies include:(1)Strengthening the construction of digital inclusive finance infrastructure,so that digital inclusive finance can develop more vigorously;(2)Enhancing users’ sense of identity with digital inclusive finance,more actively and actively promote the deeper integration of digital technology and financial services;(3)attach importance to the balanced development of digital inclusive finance between regions,and strengthen the role of digital inclusive finance in boosting the profitability of GEM enterprises in the central and western regions;(4)Improve the financing support of digital inclusive finance to non-state-owned GEM enterprises and improve their profitability;(5)Establish and improve the digital inclusive finance supervision system to enhance the ability of digital inclusive finance to serve the real economy.