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The effect of digital inclusive finance on corporate technological innovation: A multilevel approach

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  • Wang, Haoran
  • Ye, Lei
  • Zhang, Rongxin
  • Bao, Ziru

Abstract

We investigate the role of regional digital inclusive finance (DIF) in corporate technological innovation (CTI), controlling for firm-specific effects. Our dataset consists of 2920 listed firms in China’s A-share market from 2013 to 2023, and we employ a multilevel mixed-effect modelling approach. We confirm that CTI depends mainly on internal drivers and that the direct effect of DIF is negligible. However, DIF is found to have an indirect effect on CTI. Firms with high revenue, large size, state ownership, or those in high-tech and manufacturing sectors are more likely to benefit from DIF to innovate, while the opposite is true for firms in highly monopolized industries and foreign-owned firms.

Suggested Citation

  • Wang, Haoran & Ye, Lei & Zhang, Rongxin & Bao, Ziru, 2025. "The effect of digital inclusive finance on corporate technological innovation: A multilevel approach," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325013066
    DOI: 10.1016/j.frl.2025.108048
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    References listed on IDEAS

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