IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v82y2025ics1544612325008244.html
   My bibliography  Save this article

Impact and mechanisms of digital finance on corporate bond credit spreads in China

Author

Listed:
  • Kang, Weijing

Abstract

The challenge of corporate bond financing and bond default has become a pressing concern and hotly debated topic in China. This study examines the impact of digital finance on corporate bond credit spread (CS) in China using 97,775 firm-year corporate bond observations from 2011 to 2020 obtained from the Wind database and employing a fixed effect model. Results indicate that digital finance significantly reduces corporate bond CS. The depth of financial usage has the greatest impact on CS, followed by coverage breadth and the overall level of digitalization. Digital finance alleviates financing constraints, lowering CS. The negative relationship between digital finance development and CS is more pronounced for firms with higher levels of accounting information opacity. Findings remain robust after addressing endogeneity issues and adopting alternative measures. Regulators are advised to adopt a sandbox regulatory mechanism to ensure the sustainable growth of digital finance.

Suggested Citation

  • Kang, Weijing, 2025. "Impact and mechanisms of digital finance on corporate bond credit spreads in China," Finance Research Letters, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325008244
    DOI: 10.1016/j.frl.2025.107565
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325008244
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.107565?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.

    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:82:y:2025:i:c:s1544612325008244. 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.