IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v75y2025ics1544612325000492.html

The impact of digital finance on the social governance capacity

Author

Listed:
  • Xiong, Mengzhi
  • Yang, Xuan
  • Huang, Bihui

Abstract

As social governance evolves, the emphasis is shifting towards integrating technological applications, notably digital finance, which enhances social governance capacity. This article constructs a social governance capacity indicator system and conducts regression estimation based on China's provincial panel data from 2011 to 2022. The results indicate that digital finance has a discernible impact on social governance capacity, with this impact being contingent upon the degree of regional openness to external influences. Furthermore, information processing capacity and technology application capacity serve as a conduit between the two.

Suggested Citation

  • Xiong, Mengzhi & Yang, Xuan & Huang, Bihui, 2025. "The impact of digital finance on the social governance capacity," Finance Research Letters, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325000492
    DOI: 10.1016/j.frl.2025.106784
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325000492
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.106784?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. Lu, Xiaomeng & Zhang, Xianjun & Guo, Jiaojiao & Yue, Pengpeng, 2024. "Digital finance era: Will individual investors become better players?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    2. Pengpeng Yue & Aslihan Gizem Korkmaz & Zhichao Yin & Haigang Zhou, 2022. "The rise of digital finance: Financial inclusion or debt trap," Papers 2201.09221, arXiv.org.
    3. Zhou, Linjiang & Shi, Xiaochuan & Bao, Yaxiong & Gao, Lihua & Ma, Chao, 2023. "Explainable artificial intelligence for digital finance and consumption upgrading," Finance Research Letters, Elsevier, vol. 58(PC).
    4. Guo, Yixuan & Zhang, Fan, 2024. "Accelerated depreciation of fixed assets and green transformation of enterprises," Pacific-Basin Finance Journal, Elsevier, vol. 86(C).
    5. Long Chen, 2016. "From Fintech to Finlife: the case of Fintech Development in China," China Economic Journal, Taylor & Francis Journals, vol. 9(3), pages 225-239, September.
    6. Guo, Xingfang & Wei, Tao & Wang, Aiping & Hu, Haifeng, 2024. "Corporate governance effects of digital finance: Evidence from corporate tax avoidance in China," Research in International Business and Finance, Elsevier, vol. 72(PA).
    7. Yue, Pengpeng & Korkmaz, Aslihan Gizem & Yin, Zhichao & Zhou, Haigang, 2022. "The rise of digital finance: Financial inclusion or debt trap?," Finance Research Letters, Elsevier, vol. 47(PA).
    8. Neluka Devpura & Fan Zhang, 2023. "The COVID-19 Pandemic and Chinese Insurance Firms: A Panel Predictability Analysis," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 59(5), pages 1464-1474, April.
    9. Gong, Min & Zeng, Yidi & Zhang, Fan, 2023. "New infrastructure, optimization of resource allocation and upgrading of industrial structure," Finance Research Letters, Elsevier, vol. 54(C).
    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. Wu, Ke & Zhang, Yongfang & Chen, Ying & Li, Miao, 2025. "Impact of digital finance on corporate ESG," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    2. Li, Zhe & Yang, Huiyu & Zhang, Tingting, 2025. "Impact of enterprise artificial intelligence development on human capital structure," Finance Research Letters, Elsevier, vol. 82(C).
    3. Qi, Quansong, 2025. "Can blockchain technology promote digital governance? An investigation of fintech’s mediating role and heterogeneity," Finance Research Letters, Elsevier, vol. 86(PA).
    4. Bu, Fanhao, 2025. "The effect of digital government construction on the enhancement of public governance capacity: An analysis based on financial information transparency," International Review of Financial Analysis, Elsevier, vol. 107(C).
    5. Zeng, Zhuo & Tang, Jian, 2025. "How does the level of digital governance moderate the impact of blockchain technology on green credit issuance?," Finance Research Letters, Elsevier, vol. 86(PA).

    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. Li, Qiubo & Zhong, Zhu & Ge, Qing, 2025. "Digital finance and sustainable development of commercial banks; insights from listed commercial banks," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    2. Qu, Gan & Wang, Zongyi, 2025. "Digital finance development and tourism consumption growth: An analysis of the moderating effect based on household wealth," Finance Research Letters, Elsevier, vol. 80(C).
    3. Zhang, Xinyu & Liu, Yixuan & Yu, Shaoze & Lin, Ouwen & Meng, Lu, 2025. "Impact of environmental protection tax on enterprise digital transformation: Evidence from Chinese listed firms," International Review of Economics & Finance, Elsevier, vol. 97(C).
    4. Wang, Peipei & Wang, Hongli, 2025. "Can digital financial development improve the accuracy of corporate earnings forecasts," Finance Research Letters, Elsevier, vol. 75(C).
    5. Dong, Li & Zhu, Xiaowei & Yang, Luwei & Jiang, Guoliang, 2025. "Unleashing the power of data element markets: Driving urban green growth through marketization, innovation, and digital finance," International Review of Economics & Finance, Elsevier, vol. 99(C).
    6. Guo, Xiaoxu & Wang, Yihan, 2025. "Effects of digital finance on enterprise total factor productivity: Evidence from the perspective of innovation level," Finance Research Letters, Elsevier, vol. 72(C).
    7. Gao, Jiwen & Li, Hao & Zhang, Didi, 2025. "Exploring the mechanisms and regional variations in how digital financial inclusion drives high-quality real economic development across China," Finance Research Letters, Elsevier, vol. 73(C).
    8. He, Yiqi & Hou, Yuxuan & Song, Xinyi & Chen, Xi, 2025. "Local government debt, digital finance and climate change: Study from the perspective of green innovation," Finance Research Letters, Elsevier, vol. 78(C).
    9. Shi, Pengfei & Zhang, Honghao & Sun, Chaojing & Wang, Xinrui & Li, Xingming, 2025. "The driving effect of digital finance on green total factor productivity—analysis based on double/debiased machine learning model and spatial durbin model," Finance Research Letters, Elsevier, vol. 81(C).
    10. Liu, Yibo & Dong, Caisheng, 2025. "Digital finance, social welfare investment, and urban–rural income inequality: Moderating role of regional economics and regional disparities," Finance Research Letters, Elsevier, vol. 77(C).
    11. Zhang, Yujin & Ye, Shujun & Liu, Jie & Zhang, Lulu & Li, Jiayi, 2025. "Can digital transformation of commercial banks reduce green credit risks?," International Review of Financial Analysis, Elsevier, vol. 99(C).
    12. Jiang, Ruichen & Wu, Qingtian, 2025. "Can digital inclusive finance narrow the internal and external wage gaps in enterprises?," International Review of Financial Analysis, Elsevier, vol. 102(C).
    13. Tang, Chaoli & Dong, Shuyun & Zhou, Rui, 2025. "The impact of digitalization on corporate resilience," International Review of Economics & Finance, Elsevier, vol. 97(C).
    14. Zheng, Sufang & Huang, Siming & Deng, Xu, 2025. "Digital inclusive finance and local government debt: Examining the mechanism of impact on high-quality rural development from a macroeconomic perspective," International Review of Financial Analysis, Elsevier, vol. 102(C).
    15. Yang, Yuelin, 2025. "The development of digital finance and the crime rate of theft," Finance Research Letters, Elsevier, vol. 71(C).
    16. Xing, Manjiang & Gong, Chi & Moon, Gyu-Hyen & Ge, Xiaohong, 2025. "Digital economy, dual innovation capability and enterprise labor productivity," International Review of Financial Analysis, Elsevier, vol. 101(C).
    17. Wei, Feiqiong & Xie, Baiwei & Chen, Mingyan, 2025. "Digital financial inclusion, e-commerce development and entrepreneurial activity," International Review of Financial Analysis, Elsevier, vol. 97(C).
    18. Li, Pengcheng & Guo, Xiaochuan & Wang, Fengzheng & Zhang, Qifeng, 2025. "Digital transformation and corporate innovation boundaries: Role of supply chain concentration and transparency," International Review of Financial Analysis, Elsevier, vol. 98(C).
    19. Xia, Weifeng & Ruan, Zhiyu & Ma, Shenglin & Zhao, Jin & Yan, Jiale, 2025. "Can the digital economy enhance carbon emission efficiency? Evidence from 269 cities in China," International Review of Economics & Finance, Elsevier, vol. 97(C).
    20. Wang, Bing & Liu, Yanyan & Yang, Xiangyu, 2024. "Digital economy and urban entrepreneurial activity," Finance Research Letters, Elsevier, vol. 66(C).

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

    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:75:y:2025:i:c:s1544612325000492. 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.