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How does technology finance promote the high-quality development of firms? Evidence from China

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  • Zhong, Yuting
  • Jin, Xin

Abstract

By constructing the provincial technology finance development index for China from 2011 to 2021 and aligning it with data from Chinese A-share listed companies, this paper empirically examines the effect of technology finance on the high-quality development of enterprises. The findings indicate that technology finance substantially boosts a firm's total factor productivity by alleviating financing constraints and fostering innovation. Furthermore, in regions with advanced industrial structure upgrades, technology finance demonstrates a more pronounced positive impact on enhancing a firm's total factor productivity. Additionally, compared to the central and eastern provinces of China, the positive effect is more significant in the western region.

Suggested Citation

  • Zhong, Yuting & Jin, Xin, 2024. "How does technology finance promote the high-quality development of firms? Evidence from China," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012157
    DOI: 10.1016/j.frl.2024.106186
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    References listed on IDEAS

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    1. Yang Liu & Yanlin Yang & Shuang Zheng & Lei Xiao & Hongjie Gao & Hechen Lu, 2022. "Dynamic Impact of Technology and Finance on Green Technology Innovation Efficiency: Empirical Evidence from China’s Provinces," IJERPH, MDPI, vol. 19(8), pages 1-17, April.
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    5. Tang, Kai, 2024. "Agricultural adaptation to the environmental and social consequences of climate change in mixed farming systems: Evidence from North Xinjiang, China," Agricultural Systems, Elsevier, vol. 217(C).
    6. Fan, Min & Zhou, Yun & Lu, Zhixi & Gao, Sen, 2024. "Fintech's impact on green productivity in China: Role of fossil fuel energy structure, environmental regulations, government expenditure, and R&D investment," Resources Policy, Elsevier, vol. 91(C).
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    Cited by:

    1. Wenjuan Su & Jiyu Yu & Lingyun Zhao, 2025. "Can Sci-Tech Finance Policy Boost Corporate ESG Performance? Evidence from the Pilot Experiment of Promoting the Integration of Technology and Finance in China," Sustainability, MDPI, vol. 17(6), pages 1-30, March.
    2. Chen, Yuling & Che, Zhen & Wan, Dongqi, 2024. "How does the financial technology innovation regulatory pilot influence financial regulation?," Finance Research Letters, Elsevier, vol. 69(PB).

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    More about this item

    Keywords

    Technology finance; TFP; Financing constraints; Technological innovation;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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