IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v69y2024ipbs1544612324012157.html
   My bibliography  Save this article

How does technology finance promote the high-quality development of firms? Evidence from China

Author

Listed:
  • Zhong, Yuting
  • Jin, Xin

Abstract

By constructing the provincial technology finance development index for China from 2011 to 2021 and aligning it with data from Chinese A-share listed companies, this paper empirically examines the effect of technology finance on the high-quality development of enterprises. The findings indicate that technology finance substantially boosts a firm's total factor productivity by alleviating financing constraints and fostering innovation. Furthermore, in regions with advanced industrial structure upgrades, technology finance demonstrates a more pronounced positive impact on enhancing a firm's total factor productivity. Additionally, compared to the central and eastern provinces of China, the positive effect is more significant in the western region.

Suggested Citation

  • Zhong, Yuting & Jin, Xin, 2024. "How does technology finance promote the high-quality development of firms? Evidence from China," Finance Research Letters, Elsevier, vol. 69(PB).
  • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012157
    DOI: 10.1016/j.frl.2024.106186
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324012157
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.frl.2024.106186?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yang Liu & Yanlin Yang & Shuang Zheng & Lei Xiao & Hongjie Gao & Hechen Lu, 2022. "Dynamic Impact of Technology and Finance on Green Technology Innovation Efficiency: Empirical Evidence from China’s Provinces," IJERPH, MDPI, vol. 19(8), pages 1-17, April.
    2. Sun, Yang & Tang, Xinwei, 2022. "The impact of digital inclusive finance on sustainable economic growth in China," Finance Research Letters, Elsevier, vol. 50(C).
    3. Karim, Sitara & Lucey, Brian M., 2024. "BigTech, FinTech, and banks: A tangle or unity?," Finance Research Letters, Elsevier, vol. 64(C).
    4. Charles J. Hadlock & Joshua R. Pierce, 2010. "New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index," The Review of Financial Studies, Society for Financial Studies, vol. 23(5), pages 1909-1940.
    5. Tang, Kai, 2024. "Agricultural adaptation to the environmental and social consequences of climate change in mixed farming systems: Evidence from North Xinjiang, China," Agricultural Systems, Elsevier, vol. 217(C).
    6. Fan, Min & Zhou, Yun & Lu, Zhixi & Gao, Sen, 2024. "Fintech's impact on green productivity in China: Role of fossil fuel energy structure, environmental regulations, government expenditure, and R&D investment," Resources Policy, Elsevier, vol. 91(C).
    7. Li, Nan & Zhou, Yifan, 2024. "Can digital financial development promote corporate green technology innovation?," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1562-1582.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Yuling & Che, Zhen & Wan, Dongqi, 2024. "How does the financial technology innovation regulatory pilot influence financial regulation?," Finance Research Letters, Elsevier, vol. 69(PB).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yi Yang & Shuhe Shi & Jingjing Wu, 2022. "Digital Financial Inclusion to Corporation Value: The Mediating Effect of Ambidextrous Innovation," Sustainability, MDPI, vol. 14(24), pages 1-23, December.
    2. Croce, M.M. & Nguyen, Thien T. & Raymond, S. & Schmid, L., 2019. "Government debt and the returns to innovation," Journal of Financial Economics, Elsevier, vol. 132(3), pages 205-225.
    3. Jiang, Pengcheng & Jiang, Hongli & Wu, Jiahui, 2022. "Is inhibition of financialization the sub-effect of the green credit policy? Evidence from China," Finance Research Letters, Elsevier, vol. 47(PB).
    4. Yuegang Song & Songlin Jin & Zhenhui Li, 2022. "Venture Capital and Chinese Firms’ Technological Innovation Capability: Effective Evaluation and Mechanism Verification," Sustainability, MDPI, vol. 14(16), pages 1-20, August.
    5. Deshuai Hou & Luhan Shi & Hong He & Jian Xiong, 2023. "Research on the Deviation of Corporate Green Behaviour under Economic Policy Uncertainty Based on the Perspective of Green Technology Innovation in Chinese Listed Companies," Sustainability, MDPI, vol. 15(9), pages 1-27, May.
    6. Giovanni Calice & Levent Kutlu & Ming Zeng, 2021. "Understanding US firm efficiency and its asset pricing implications," Empirical Economics, Springer, vol. 60(2), pages 803-827, February.
    7. Yuan, Li & Rao, Siqi & Yang, Shenggang & Dai, Pengyi, 2023. "Does equity market openness increase productivity? the dual effects of Shanghai-Hong Kong stock Connect program in China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 88(C).
    8. Dongjing Chen & Xiaotong Guo, 2023. "Impact of the Digital Economy and Financial Development on Residents’ Consumption Upgrading: Evidence from Mainland China," Sustainability, MDPI, vol. 15(10), pages 1-25, May.
    9. Cao, Chunfang & Li, Xiaoyang & Xia, Changyuan, 2021. "The complicit role of local government authorities in corporate bribery: Evidence from a tax collection reform in China," China Economic Review, Elsevier, vol. 65(C).
    10. Qi‐an Chen & Shuxiang Tang & Yuan Xu, 2022. "Do government subsidies and financing constraints play a dominant role in the effect of state ownership on corporate innovation? Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3698-3714, December.
    11. Robin Döttling & Tomislav Ladika & Enrico Perotti, 2016. "The (Self-)Funding of Intangibles," Tinbergen Institute Discussion Papers 16-093/IV, Tinbergen Institute.
    12. Alderson, Michael J. & Betker, Brian L. & Halford, Joseph T., 2021. "Fictitious dividend cuts in the CRSP data," Journal of Corporate Finance, Elsevier, vol. 71(C).
    13. Long Xue & Qianyu Zhang & Xuemang Zhang & Chengyu Li, 2022. "Can Digital Transformation Promote Green Technology Innovation?," Sustainability, MDPI, vol. 14(12), pages 1-20, June.
    14. Ming Yuan & Jingya Dang & Yujie Hong & Di Gao & Ziyi Xu, 2024. "The Impact of Supply Chain Network Centrality on Sustainable Mergers and Acquisitions: Evidence from China," Sustainability, MDPI, vol. 16(19), pages 1-24, September.
    15. Guo, Shu & Zhang, ZhongXiang, 2023. "Green credit policy and total factor productivity: Evidence from Chinese listed companies," Energy Economics, Elsevier, vol. 128(C).
    16. Qaisar Ali & Sulistya Rusgianto & Shazia Parveen & Hakimah Yaacob & Razali Mat Zin, 2024. "An empirical study of the effects of green Sukuk spur on economic growth, social development, and financial performance in Indonesia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 21097-21123, August.
    17. Falavigna, Greta & Ippoliti, Roberto, 2023. "SMEs’ behavior under financial constraints: An empirical investigation on the legal environment and the substitution effect with tax arrears," The North American Journal of Economics and Finance, Elsevier, vol. 66(C).
    18. Zhang, Wei, 2015. "R&D investment and distress risk," Journal of Empirical Finance, Elsevier, vol. 32(C), pages 94-114.
    19. Pinkowitz, Lee & Stulz, Rene M. & Williamson, Rohan, 2012. "Multinationals and the High Cash Holdings Puzzle," Working Paper Series 2012-10, Ohio State University, Charles A. Dice Center for Research in Financial Economics.
    20. Lin, Boqiang & Xu, Chongchong, 2024. "The effects of industrial robots on firm energy intensity: From the perspective of technological innovation and electrification," Technological Forecasting and Social Change, Elsevier, vol. 203(C).

    More about this item

    Keywords

    Technology finance; TFP; Financing constraints; Technological innovation;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012157. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.