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Supply chain financing, digital financial inclusion and enterprise innovation: Evidence from China

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  • Bai, Hengrui
  • Huang, Lingyu
  • Wang, Ziqi

Abstract

Supply chain financing (SCF) has become an important supplement for financing access, and enterprise innovation is essential for enterprise development. In this paper, we explore the effects of SCF on enterprise innovation in the context of digital financial inclusion (DFI) development. Using the fixed effects model based on the sample of A-share listed firms in Shenzhen Stock Exchange from 2011 to 2021, we find that SCF significantly increases enterprise innovation. The DFI development has positive moderating effects on the relationship between SCF and enterprise innovation. The effect occurs by easing firms' financial constraints. Heterogeneity analysis results show that the promotive relationship is more significant among non-state-owned enterprises (non-SOEs), high-tech enterprises, enterprises in eastern regions and enterprises with low information disclosure quality. Furthermore, we find that in the context of DFI development, SCF promotes innovation activities for state-owned enterprises (SOEs) but it inhibits them for non-high-tech enterprises, enterprises in non-eastern regions and enterprises with high information disclosure quality. After robustness tests, we find that the results of this study remain valid.

Suggested Citation

  • Bai, Hengrui & Huang, Lingyu & Wang, Ziqi, 2024. "Supply chain financing, digital financial inclusion and enterprise innovation: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:finana:v:91:y:2024:i:c:s1057521923005604
    DOI: 10.1016/j.irfa.2023.103044
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    Cited by:

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    5. Che, Shuai & Tao, Miaomiao & Silva, Emilson & Sheng, Mingyue Selena & Zhao, Congyu & Wang, Jun, 2024. "Financial misallocation and green innovation efficiency: China's firm-level evidence," Energy Economics, Elsevier, vol. 136(C).
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    7. Shang, Rui & Wang, Yan, 2024. "Digital finance development and equalization of educational opportunities: An empirical analysis based on CFPS panel data," Finance Research Letters, Elsevier, vol. 65(C).
    8. Mou, Kefen & Xu, Bing, 2024. "Digital finance, government regulation, and corporate capital market efficiency," Finance Research Letters, Elsevier, vol. 68(C).
    9. Qin, Lu & Chen, Chunchun & Chen, Yan & Su, Yanzhi, 2024. "Digital financial inclusion, analyst attention, and the green innovation in energy firms," Finance Research Letters, Elsevier, vol. 67(PB).
    10. Zhu, Yan & Zhang, Zhuyun, 2024. "Supply chain digitalization and corporate ESG performance: Evidence from supply chain innovation and application pilot policy," Finance Research Letters, Elsevier, vol. 67(PA).

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    More about this item

    Keywords

    Supply chain financing; Digital financial inclusion; Enterprise innovation; Digital financial inclusion index;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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