Research On The Impact Of Digital Inclusive Finance On Corporate Financial Risk

With the development of enterprises,finance will become more and more important.A healthy financial situation is the premise and guarantee for enterprises to move forward steadily.Therefore,enterprises should pay more attention to risk control while pursuing profits and development,especially for enterprise financial risk control.However,in recent years,China’s real economy sector is highly indebted,and the financial risk of enterprises has become increasingly prominent.Corporate financial risks will not only affect the stability and development of individual enterprises,but also trigger systemic risks through the spread of capital markets,posing a serious threat to national economic security.Therefore,it is particularly important to analyze the causes of financial risks and find measures to prevent corporate financial risks.At the 2016 Hangzhou G20 Summit,the participants jointly proposed the concept of ’Digital Inclusive Finance’,it is a new financial format formed by the rapid rise of digital technology and deeply integration with traditional inclusive finance,it has the characteristics and advantages of wide coverage,low cost and high efficiency.It can effectively alleviate the financing difficulties of enterprises,play the role of information governance by reducing information asymmetry,and improve investment efficiency,thus affecting the financial situation of enterprises.So the development of digital inclusive finance may provides a new way to solve the financial risks.Therefore,this thesis adopts a combination of theoretical and empirical methods to explore the impact of digital inclusive finance on corporate financial risks.First of all,we sort out from the theoretical level,analyze the influence mechanism of digital inclusive finance on corporate financial risk,and further put forward the research hypothesis according to the theoretical analysis.Then,take A-share listed companies in Shanghai and Shenzhen from2011 to 2020 as samples,and we will get a panel data set to take empirical test of the impact of digital inclusive finance on corporate financial risks.At the same time,The robustness test is carried out by replacing the main variable measurement index,the core explanatory variable lag regression,the method of eliminating some annual observations that have a significant impact,and instrumental variable regression.In addition,In order to clearly reflect how digital inclusive finance acts on corporate financial risks,this thesis also constructs a mediating effect model to empirically test the mediating effect of financing constraints and investment efficiency.Finally,considering that the differences in the development environment of digital inclusive finance and the environment of the region where enterprises are located may affect the effect of digital inclusive finance,this thesis also examines the regulatory role of financial regulation and conducts a heterogeneity analysis on the differences in regional marketization level and financial endowment level.The research results show that:(1)The development of digital inclusive finance is conducive to reducing the financial risks.To be specific,digital inclusive finance can provide enterprises with more low-cost and highly specialized financial products to bring more efficient,more convenient and more accurate financial services to the long-term development of enterprises,so as to improve the financial stability of enterprises and reduce financial risks.And after a series of robustness tests,the conclusion is still valid.(2)Mechanism study shows that,on the one hand,digital financial inclusion can reduce the financing constraints by improving the accessibility of financial services and reducing the financial cost,and finally reduce the financial risk.On the other hand,digital inclusive finance can also reduce information asymmetry,that is beneficial for the fund supplier to play the role of post information communication and corresponding external supervision to improve the investment efficiency of the enterprise,and finally reduce the financial risk.(3)What is more?The financial supervision plays a positive regulatory role in the process of digital inclusive finance restraining corporate financial risks,and financial supervision strengthens the effect of digital inclusive finance.The effect of digital inclusive finance is also different between regions with different degrees of marketization,in low-market areas,the role of digital inclusive finance in reducing corporate financial risks is more obvious.The effect of digital inclusive finance also depends on the development of traditional finance.The role of digital inclusive finance in reducing corporate financial risks is more obvious in enterprises in areas with superior financial endowments.The conclusion of the research shows that no matter the government decision-making departments,markets,financial institutions or enterprises,should attach great importance to the important role of digital inclusive finance in the financial stability and development of enterprises.Specifically,the following aspects should be done:(1)improve relevant policies for the development of digital inclusive finance;(2)promote enterprises to embrace digital inclusive finance;(3)strengthen the supervision of finance;(4)promote the development of traditional finance.