Research On The Influence Of Digital Finance On Chinese Enterprise Innovation

Since the reform and opening up,China has always adhered to the principle of innovation-driven,and has achieved fruitful results in the field of scientific and technological innovation.However,the outbreak of the science and technology war between China and the United States has revealed the fact that China’s underlying technology is controlled by others.Enterprise innovation is an activity with high sunk cost,long waiting time and many uncertain factors.In order to achieve sustainable development,it needs stable and sufficient financial support and guarantee.Because China’s financial system is still underdeveloped,the complex financing environment and high costs are the main factors that restrict the development of enterprise innovation activities.In recent years,the emergence of digital finance has had a significant impact on citizens,enterprises and traditional financial institutions.People have been talking about the words "digital finance" and "financial technology".This paper studies how digital finance affects enterprise innovation.It not only theoretically analyzes the impact of digital finance on enterprise innovation and its operating mechanism,but also uses the digital inclusive financial index from 2011 to 2020 and the relevant data of China’s A-share listed enterprises to conduct empirical research.The relevant conclusions are as follows:(1)Digital finance has played a significant positive role in influencing enterprise innovation,and its robustness has been tested by replacing the explained variable,replacing the core explanatory variable and replacing the model,and the conclusion remains unchanged.(2)Coverage,depth of use and degree of digitalization are the three most important sub-dimensions of digital finance.The first two dimensions are the main driving force of enterprise innovation,while the third dimension has no significant impact on enterprise innovation.(3)From the perspective of impact mechanism,there are transmission channels for digital finance to influence enterprise innovation.This paper mainly selects debt financing cost as an intermediary variable.Through the test of the impact mechanism,it is found that digital finance has the effect of encouraging enterprises to actively carry out innovation activities by reducing the debt financing cost of enterprises,and further demonstrates the respective role of digital finance and debt financing cost in the influencing factors of enterprise innovation by building a model.It is found that compared with debt financing cost,digital finance has an inhibitory effect on enterprise innovation,The incentive effect of digital finance is more significant,so the net effect of the two is positive.(4)With regard to the heterogeneity analysis,this paper finds that the innovation promotion role of digital finance in non-state-owned enterprises,small enterprises and enterprises in the central and western regions is more obvious than that in state-owned enterprises,large enterprises and enterprises in the eastern region.(5)With regard to the regulatory effect,this paper examines the regulatory effect of macro-prudential policy by using the interaction of the digital inclusive financial index and the constructed macro-prudential policy index,and finds that it has a negative regulatory effect on the relationship between digital finance and enterprise innovation.The conclusion drawn in this paper is very stable and has the following policy significance: First,digital finance has developed rapidly and has a good momentum of development.It should maintain the normal and sustainable development of digital finance in a good direction,and use the new service model of digital finance to extend the coverage of financial services and improve the pertinence of financial services.Second,when formulating corresponding policies,the government should pay more attention to non-state-owned enterprises and small and medium-sized enterprises,because these groups have great enthusiasm for innovation and development potential;Third,we should optimize the business and regulatory environment in the region where the enterprise is located,and put more resources and focus on the central and western regions,so that digital finance can play its value in more regions,while ensuring that the main driving force for the development of various industries remains strong.