IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v65y2024ics1544612324006330.html
   My bibliography  Save this article

Quantity or quality: Novel insights into the impact of digital finance on innovation

Author

Listed:
  • Zhu, Xiaoke
  • Wu, Hanqi
  • Deng, Qiyun

Abstract

Despite prior literature shedding light on the role of digital finance in enhancing innovation quantity, research on whether and how it influences innovation quality remains limited. To address this gap, this study investigates the causal relationship between digital finance and the innovation performance of manufacturing enterprises, and identifies the inclusive effects of digital finance in China. We provide compelling evidence that digital finance generates significantly positive effects on innovation performance, encompassing both quantity and quality dimensions. Mechanism analyses demonstrate that financial constraints serve as a potential channel through which digital finance operates. We also observe the inclusive effects of digital finance on innovation performance. Specifically, the innovation improvements induced by digital finance are more pronounced for small and medium-sized enterprises (SMEs) and state-owned enterprises (SOEs).

Suggested Citation

  • Zhu, Xiaoke & Wu, Hanqi & Deng, Qiyun, 2024. "Quantity or quality: Novel insights into the impact of digital finance on innovation," Finance Research Letters, Elsevier, vol. 65(C).
    • Handle: RePEc:eee:finlet:v:65:y:2024:i:c:s1544612324006330
    DOI: 10.1016/j.frl.2024.105603
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324006330
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.105603?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

    Keywords

    Digital finance; Inclusive effects; High-quality innovation; Financial constraints; Manufacturing sector;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    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:eee:finlet:v:65:y:2024:i:c:s1544612324006330. 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: http://www.elsevier.com/locate/frl .

    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.