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Does digital finance facilitate enterprises’ overseas expansion? Evidence from Chinese A—Share listed companies

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  • Xin, Ling
  • Han, Yunge
  • Cui, Xiaoyan

Abstract

This study analyzes the impact of digital finance development on corporate overseas expansion and its mechanisms using the Chinese City Digital Finance Development Index and data from Chinese A-share listed companies (2011–2022). Applying an instrumental variable two-stage least squares (IV-2SLS) model, this paper finds that digital finance development significantly promotes overseas expansion, primarily by mitigating financing constraints and enhancing managerial efficiency through digital transformation. Effects are heterogeneous: the promotion is significant for firms with higher innovation capabilities, superior ESG performance, and greater intangible asset ratios, while insignificant for those with lower levels of these characteristics.

Suggested Citation

  • Xin, Ling & Han, Yunge & Cui, Xiaoyan, 2025. "Does digital finance facilitate enterprises’ overseas expansion? Evidence from Chinese A—Share listed companies," Finance Research Letters, Elsevier, vol. 85(PA).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pa:s1544612325011201
    DOI: 10.1016/j.frl.2025.107862
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    1. Huang, Xiaokui & Zhang, Ying, 2025. "How does the new asset management regulations promote enterprises' overseas development?," Finance Research Letters, Elsevier, vol. 86(PF).

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