Taking A-share listed companies from 2011 to 2020 as the research object, this paper explores the impact and mechanism of digital finance on corporate violations. The research findings indicate that: (1) Digital finance significantly reduces corporate violations. (2) Digital finance reduces corporate violations by leveraging the resource effect, the information effect, and the governance effect. Specifically, digital finance can reduce corporate violations by alleviating financing constraints and information asymmetry, as well as enhancing internal control quality. (3) Further investigation reveals that both the breadth and depth of digital finance can suppress corporate violations. The inhibitory effect of digital finance on corporate violations is more pronounced in eastern regions. Additionally, there is a complementary relationship between digital finance and traditional finance, that is, in regions with well-developed traditional finance, digital finance exhibits a better inhibitory effect on corporate violations. This paper not only enriches the literature on digital finance and corporate violations, but also provides insights and guidance for promoting digitalization and achieving high-quality development in capital markets.
/ Journals / Foreign Economics & Management
Foreign Economics & Management
LiZengquan, Editor-in-Chief
ZhengChunrong, Vice Executive Editor-in-Chief
YinHuifang HeXiaogang LiuJianguo, Vice Editor-in-Chief
Does Digital Finance Help Reduce Corporate Violations? An Empirical Study Based on A-share Listed Companies
Foreign Economics & Management Vol. 46, Issue 09, pp. 17 - 30 (2024) DOI:10.16538/j.cnki.fem.20240524.203
Summary
References
Summary
Cite this article
Dong Xiaohong, Pan Chengshuang, Lyu Jing. Does Digital Finance Help Reduce Corporate Violations? An Empirical Study Based on A-share Listed Companies[J]. Foreign Economics & Management, 2024, 46(9): 17-30.
Export Citations as:
For
ISSUE COVER
RELATED ARTICLES