IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v67y2024ipas1544612324008316.html

Digital economy empowers enterprises to decrease financialization: evidence from e-commerce demonstration cities

Author

Listed:
  • Wang, Yuqin
  • Liu, Chengkui
  • Wang, Hao
  • Javaid, Mudaser

Abstract

In the current era of informatization and intelligence, achieving a profound integration of the digital and real economies is essential to high-quality economic development. This study investigates the impact of digital economy development on corporate financialization in China. It employs a staggered difference-in-differences (DID) approach anchored on the establishment of e-commerce demonstration cities. The construction of e-commerce demonstration cities is shown to significantly inhibit the financialization of enterprises, while prompting enterprises to move from "virtual to real." In the context of an economic development strategy that promotes the real economy through digitization, this paper provides new evidence that the digital economy can help enterprises to decrease financialization. Moreover, it presents specific policy implications for further promoting deep integration of the digital and real economies, and cultivating new engines for high-quality economic development.

Suggested Citation

  • Wang, Yuqin & Liu, Chengkui & Wang, Hao & Javaid, Mudaser, 2024. "Digital economy empowers enterprises to decrease financialization: evidence from e-commerce demonstration cities," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324008316
    DOI: 10.1016/j.frl.2024.105801
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324008316
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.105801?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Lin William Cong & Zhiguo He, 2019. "Blockchain Disruption and Smart Contracts," The Review of Financial Studies, Society for Financial Studies, vol. 32(5), pages 1754-1797.
    2. Demir, FIrat, 2009. "Financial liberalization, private investment and portfolio choice: Financialization of real sectors in emerging markets," Journal of Development Economics, Elsevier, vol. 88(2), pages 314-324, March.
    3. Severin Borenstein & Garth Saloner, 2001. "Economics and Electronic Commerce," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 3-12, Winter.
    4. Du, Pengcheng & Zheng, Yi & Wang, Shuxun, 2022. "The minimum wage and the financialization of firms: Evidence from China," China Economic Review, Elsevier, vol. 76(C).
    5. Smith, Clifford W. & Stulz, René M., 1985. "The Determinants of Firms' Hedging Policies," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 20(4), pages 391-405, December.
    6. Thorsten Beck & Ross Levine & Alexey Levkov, 2010. "Big Bad Banks? The Winners and Losers from Bank Deregulation in the United States," Journal of Finance, American Finance Association, vol. 65(5), pages 1637-1667, October.
    7. Fosso Wamba, Samuel & Akter, Shahriar & Edwards, Andrew & Chopin, Geoffrey & Gnanzou, Denis, 2015. "How ‘big data’ can make big impact: Findings from a systematic review and a longitudinal case study," International Journal of Production Economics, Elsevier, vol. 165(C), pages 234-246.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Ya’nan, 2025. "Digital financial policy, technological innovation, and the dynamic effects of E-commerce development," Finance Research Letters, Elsevier, vol. 85(PE).
    2. Xu, Zhenhua & Xu, Wenhao & Xin, Daleng, 2025. "Digital–real economy integration and urban low-carbon development in China," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 606-621.
    3. Liu, Zhaoyong & Zhao, Jingfang, 2026. "Digital economy-driven sports industry: The synergistic effects of data factorization and tourism upgrading," Finance Research Letters, Elsevier, vol. 92(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Xiangsheng & Lv, Lingli, 2023. "The effect of China's low carbon city pilot policy on corporate financialization," Finance Research Letters, Elsevier, vol. 54(C).
    2. Tang, Kai, 2024. "The influence of managerial ability on corporate financialization," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 1229-1245.
    3. Chen, Lirong & Long, Yuxuan & Tang, Xuemei & Wang, Jiani, 2025. "Can accounts receivable factoring restrain corporate financialization? Evidence from China," International Review of Economics & Finance, Elsevier, vol. 98(C).
    4. Shu, Jiaxian & Zhang, Chengsi & Zheng, Ning, 2020. "Financialization and sluggish fixed investment in Chinese real sector firms," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 1106-1116.
    5. Chuanlin Shao & Nan Sun & Xiaofan Li & Weiwei Xiao, 2025. "Tax Enforcement Independence and Corporate Financial Asset Holdings: Quasinatural Experimental Evidence From China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(8), pages 4138-4154, December.
    6. Qi, Minhao & Liu, Yuxin & Hu, Changlong & Yang, Zhijiu, 2024. "The unintended consequence of environmental centralization: Evidence from firm financialization," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    7. Ye Tian, 2026. "Credit Data Accessibility and Shadow Banking of Non‐Financial Firms," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 66(2), pages 1209-1231, June.
    8. Ye, Yongwei & Kong, Dongmin & Li, Renzhi & Li, Xiaofan & Tao, Yunqing, 2024. "Online judicial auction, loan availability, and corporate investment in China," The British Accounting Review, Elsevier, vol. 56(6).
    9. Zhang, Baizhen & Guo, Meiting, 2025. "Strong financial regulation and the intelligent transformation of enterprises," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 186-207.
    10. Giampaolo Gabbi & Elisa Ticci, 2014. "Implications of financialisation for sustainability," Working papers wpaper47, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    11. He, Guanming & Li, Zhichao & Yu, Ling & Zhou, Zhanqiang, 2025. "Does commercial reform embracing digital technologies mitigate stock price crash risk?," Journal of Corporate Finance, Elsevier, vol. 91(C).
    12. Fu, Xiaoxia & Wang, Shanshan & Jia, Jia, 2024. "Equity incentives and dynamic adjustments to corporate financialization: Evidence from Chinese A-share listed companies," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 948-966.
    13. Lin, Yongjia & Deng, Hong & Wang, Yizhi, 2025. "Institutional investors’ site visits and corporate financialization in China," International Review of Financial Analysis, Elsevier, vol. 97(C).
    14. repec:idn:journl:v:21:y:2018:i:1:p:1-10 is not listed on IDEAS
    15. Gong, Cynthia M. & Gong, Pu & Jiang, Mengting, 2023. "Corporate financialization and investment efficiency: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    16. Tadas Limba & Andrejus Novikovas & Andrius Stankevičius & Antanas Andrulevičius & Manuela Tvaronavičienė, 2020. "Big Data Manifestation in Municipal Waste Management and Cryptocurrency Sectors: Positive and Negative Implementation Factors," Sustainability, MDPI, vol. 12(7), pages 1-14, April.
    17. Liu, Xiaoying & Wang, Yujing & Li, Meng & Gao, Haoyu, 2024. "The importance of speed to corporate financial asset holdings: Evidence from high-speed rail," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    18. Hou, Qingsong & Tang, Xiaofang & Teng, Min, 2021. "Labor costs and financialization of real sectors in emerging markets," Pacific-Basin Finance Journal, Elsevier, vol. 67(C).
    19. Xue, Lixing & Chen, Chong & Wang, Na & Zhang, Lirong, 2023. "Gambling culture and corporate financialization: Evidence from China's welfare lottery sales," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    20. Jin, Jian & Xu, Su & Gao, Bei, 2025. "Can energy efficiency credit guidelines boost enterprises' low-carbon technological innovation? Evidence from China," Energy Economics, Elsevier, vol. 150(C).
    21. Kong, Dongmin & Liu, Chenhao & Ye, Wenxu, 2023. "Randomized inspection and firm's government subsidies: A natural experiment in China," China Economic Review, Elsevier, vol. 82(C).

    More about this item

    Keywords

    ;
    ;
    ;

    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:67:y:2024:i:pa:s1544612324008316. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.