Digital Finance And Corporate Investment Structure

According to the report of the 20 th Party Congress,in order to comprehensively build a modern socialist country,it is necessary to accelerate the development of digital economy and strengthen the deep integration of digital economy and real economy.2022 Central Economic Work Conference also proposed that high-quality development should be promoted through high-quality investment.However,at present,the excessive financialization of enterprises has become an obstacle to the development of economic transformation.In order to pursue excessive returns,enterprises over-invest in finance,which makes enterprise resources continuously flow from the real sector to the financial sector,which has a negative impact on the future development of their main business,which is more likely to trigger systemic financial risks,which also has a very negative impact on the development of the macro economy.Digital finance,as an important part of the digital economy,has driven the change of traditional financial market with the burst of digital technology power and opened the digital revolution.The rich practice of digital finance has contributed to the alleviation of corporate financing problems and injected new momentum into the development of real enterprises.It has been shown that digital finance can have a very significant impact on the development of real enterprises,so how does digital finance affect the investment structure of real enterprises? What are its specific intermediary mechanisms?Based on this,this paper firstly starts from the existing research literature on digital finance and corporate investment,composes and summarizes the current research status,then derives the research content of this paper,proposes the research hypothesis of this paper after conducting theoretical analysis on this basis,then conducts an empirical test using the data of all A-share listed companies from2011-2020,and then draws the research conclusion of this paper.Finally,based on the previous findings,this paper gives policy recommendations from both government and business perspectives.This paper concludes that digital finance is positively correlated with firms’ total and physical investment and negatively correlated with firms’ financial investment,all other things being equal.Digital finance has different paths of influence on different investment behaviors of enterprises.Digital finance influences the investment structure of enterprises through two transmission mechanisms: “digital finance-financing constraints-real investment” and “digital finance-management myopia-financial investment”.Further,the impact of digital finance on the investment structure of firms across property rights,industries,and regions is also heterogeneous.The research in this paper enriches the research literature on digital finance and corporate investment behavior.At present,academic research literature on corporate investment behavior focuses on a single investment behavior,while this paper divides corporate investment behavior into financial investment behavior and entity investment behavior,and analyzes both behaviors under the same research framework,which comprehensively reflects the logical relationship between the impact of digital finance on corporate entity investment and financial investment.In terms of influence mechanism,this paper deepens the influence mechanism of digital finance development on corporate investment structure by starting from two mechanisms of action,namely external financing constraints and internal management myopia.