Digital finance and capital mobility: Evidence from cross-regional investment of listed companies in China

IF 4.8 2区经济学 Q1 BUSINESS, FINANCE

Pacific-Basin Finance Journal Pub Date : 2024-08-28 DOI:10.1016/j.pacfin.2024.102515

Qiongzhi Liu , Renke Li , Yuqin Wang

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Abstract

This study examines the role of digital finance in dismantling regional barriers to capital flow and in fostering the creation of a unified market. Using the provincial-level digital finance index and data on subsidiaries by listed companies, we demonstrate how digital finance index effectively enhances cross-regional investment. Our findings are robustly supported by extensive tests. We propose two potential mechanisms through which digital finance may influence the level of cross-regional investment by listed companies: first, by reducing the degree of segmentation in capital markets between regions and second, by lowering firms' capital costs and financial constraint. Our results indicate that the impact of digital finance on cross-regional investment is particularly pronounced in environments with higher competition, and among companies without political connections. Additionally, our research indicates that in regions with higher financial regulation, digital finance can better facilitate capital flow. This study provides new research perspectives and evidence on the influence of digital finance on the development of the real economy and the promotion of capital mobility.

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数字金融与资本流动：中国上市公司跨区域投资的证据

本研究探讨了数字金融在消除资本流动的地区壁垒和促进建立统一市场方面的作用。利用省级数字金融指数和上市公司子公司数据，我们展示了数字金融指数如何有效促进跨区域投资。我们的研究结果得到了广泛测试的有力支持。我们提出了数字金融影响上市公司跨地区投资水平的两个潜在机制：一是降低地区间资本市场的分割程度，二是降低企业的资本成本和财务约束。我们的研究结果表明，数字金融对跨地区投资的影响在竞争较激烈的环境中以及在没有政治关系的公司中尤为明显。此外，我们的研究还表明，在金融监管程度较高的地区，数字金融能更好地促进资本流动。本研究为数字金融对实体经济发展和促进资本流动的影响提供了新的研究视角和证据。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Pacific-Basin Finance Journal BUSINESS, FINANCE-

CiteScore

6.80

自引率

6.50%

发文量

157

期刊介绍： The Pacific-Basin Finance Journal is aimed at providing a specialized forum for the publication of academic research on capital markets of the Asia-Pacific countries. Primary emphasis will be placed on the highest quality empirical and theoretical research in the following areas: • Market Micro-structure; • Investment and Portfolio Management; • Theories of Market Equilibrium; • Valuation of Financial and Real Assets; • Behavior of Asset Prices in Financial Sectors; • Normative Theory of Financial Management; • Capital Markets of Development; • Market Mechanisms.