IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v75y2023ics0160791x23001562.html
   My bibliography  Save this article

Effect of big data on enterprise financialization: Evidence from China's SMEs

Author

Listed:
  • Gao, Yuqiang
  • Wang, Zishuai
  • Wang, Kaihua
  • Zhang, Ruiai
  • Lu, Yuchen

Abstract

China's advancement in big data technology is poised to resolve the dilemma of the “shift from real to virtual” for enterprises and foster a virtuous economic and financial cycle. This study concentrates on China's small and medium enterprises (SMEs) to explore the economic impact of big data on enterprise financialization. The findings indicate that big data significantly reduces the dependency on financial asset allocation and mitigates the inclination toward financialization. These effects are more pronounced in enterprises facing financing constraints, in the maturity stage, and in highly competitive industries. Further mechanism analysis suggests that resource crowding-out, governance change, and risk diversification are important micro-mechanisms through which big data inhibits the financialization of enterprises. This study theoretically enriches the research on enterprise digital transformation and deepens the internal logical links between big data technology and enterprise economic behavior. It also provides empirical evidence and policy implications for preventing the potential risks of industrial “hollowing out” and promoting a virtuous economic and financial order cycle.

Suggested Citation

  • Gao, Yuqiang & Wang, Zishuai & Wang, Kaihua & Zhang, Ruiai & Lu, Yuchen, 2023. "Effect of big data on enterprise financialization: Evidence from China's SMEs," Technology in Society, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:teinso:v:75:y:2023:i:c:s0160791x23001562
    DOI: 10.1016/j.techsoc.2023.102351
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X23001562
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2023.102351?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.

    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:teinso:v:75:y:2023:i:c:s0160791x23001562. 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: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    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.