Financial technology and commercial credit redistribution

Abstract

Whether financial technology can restrain the redistribution of commercial credit is of far-reaching significance for preventing financial risks of enterprises. Based on this, this paper uses the data of China's Shanghai and Shenzhen A-share listed companies from 2012 to 2021 to investigate the impact of financial technology on commercial credit reallocation. The results show that the development of financial technology can significantly weaken the redistribution of commercial credit, which is still valid after a series of robustness tests. Further analysis shows that the role of financial technology is more obvious in areas with weaker financial development, state-owned enterprises and large-scale enterprises. The mechanism test shows that the development of financial technology can alleviate the financing obstacles faced by enterprises in direct financing, enhance the allocation efficiency of credit resources, and thus inhibit the redistribution of commercial credit. This paper not only provides solutions for micro-subjects to improve financing channels, but also provides theoretical support for understanding and proposing the development of financial technology under the new normal to some extent.