IDEAS home Printed from https://ideas.repec.org/a/taf/raaexx/v31y2024i6p966-986.html
   My bibliography  Save this article

Digital transformation and financing constraints of SMEs: evidence from China

Author

Listed:
  • Lei Guo
  • Luying Xu
  • Junyi Wang
  • Jingwen Li

Abstract

It is known that digital transformation can sharpen the competitive edge of SMEs, yet the relationship between digital transformation and the financing of SMEs only receives little attention. Based on the data of Chinese companies listed on SME board from 2010 to 2020, this paper empirically examines the impact of digital transformation on the financing constraints of SMEs as well as its mechanism. The study finds that digital transformation significantly eases the financing constraints of SMEs, and the conclusion remains valid after considering endogeneity issues and conducting robustness tests. The mechanism analysis manifests that SMEs improve the quality of external information disclosure through digital transformation, thereby alleviating financing constraints. In addition, the impact of digital transformation on the financing constraints of SMEs demonstrates prominent heterogeneity. The mitigation effect of digital transformation is more pronounced in areas where digital financial is well developed, in state-owned enterprises, high-tech enterprises and long-term oriented enterprises. In the context of SMEs, this paper reveals the relationship between digital transformation and corporate financing, enriching the studies on the organizational performance effects of digital transformation.

Suggested Citation

  • Lei Guo & Luying Xu & Junyi Wang & Jingwen Li, 2024. "Digital transformation and financing constraints of SMEs: evidence from China," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 31(6), pages 966-986, November.
    • Handle: RePEc:taf:raaexx:v:31:y:2024:i:6:p:966-986
    DOI: 10.1080/16081625.2023.2257235
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/16081625.2023.2257235
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/16081625.2023.2257235?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.

    More about this item

    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:taf:raaexx:v:31:y:2024:i:6:p:966-986. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/raae20 .

    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.