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Digital finance, managerial ability, and corporate financing costs

Author

Listed:
  • Xie, Jiayue
  • Wang, Shengnan
  • Chen, Lu
  • Liu, Yan

Abstract

This study uses data from the Chinese A-share market from 2012 to 2022 to examine the inherent relationship between corporate financing costs and digital finance. Findings reveal that digital finance greatly suppresses the costs of equity financing and debt financing. Improving managerial skills has a certain reinforcing effect on the aforementioned effects. The inhibitory effect of the depth of digital finance utilization on debt financing costs has not been fully realized.

Suggested Citation

  • Xie, Jiayue & Wang, Shengnan & Chen, Lu & Liu, Yan, 2025. "Digital finance, managerial ability, and corporate financing costs," Finance Research Letters, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325004982
    DOI: 10.1016/j.frl.2025.107235
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    References listed on IDEAS

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    Cited by:

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    2. Luo, Ruixin & Fu, Rong, 2025. "CEO legal liability, financing cost, and Firms’ S&T innovation efficiency," Finance Research Letters, Elsevier, vol. 86(PA).
    3. Atawnah, Nader & Ajmal, T.K. & Manchanda, Divya, 2025. "Geopolitical risk, managerial ability and cost stickiness," Finance Research Letters, Elsevier, vol. 85(PD).

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