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How government digital attention alleviates enterprise financing constraints: An enterprise digitalization perspective

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  • Peng, Zihao
  • Huang, Yiqi
  • Liu, Luanhong
  • Xu, Wanli
  • Qian, Xihong

Abstract

This study emphasizes the impact of government interventions on improving enterprise financing in the digital age. By analyzing data from China's A-share listed companies spanning 2011 to 2021, it reveals that government digital attention significantly alleviates enterprise financing constraints. These findings remain robust after rigorous endogeneity and robustness tests. The study further elucidates that government digital attention facilitates enterprise digital transformation and innovation, which, in turn, ameliorates enterprise financing constraints. This elucidation of a dual-mechanism model augments the scholarly comprehension of the interplay between governmental initiatives and enterprise financing, providing imperative implications for policy formulation.

Suggested Citation

  • Peng, Zihao & Huang, Yiqi & Liu, Luanhong & Xu, Wanli & Qian, Xihong, 2024. "How government digital attention alleviates enterprise financing constraints: An enterprise digitalization perspective," Finance Research Letters, Elsevier, vol. 67(PB).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pb:s1544612324009139
    DOI: 10.1016/j.frl.2024.105883
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    More about this item

    Keywords

    Government digital attention; Enterprise financing constraints; Enterprise digitalization perspective; Digital transformation; Digital innovation;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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