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How digital government shapes financial risk management capacity: an empirical analysis based on the data factorization path

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  • Zhu, Nina
  • Wei, Anyun
  • Yang, Zongpu

Abstract

With the advancement of digital government (DG) construction, the application of information technology in financial regulation has increasingly drawn attention. Based on annual panel data from Chinese provinces from 2012 to 2023 (excluding Tibet, Hong Kong, Macao, and Taiwan), this paper examines the relationships among DG, data factorization, and financial risk management capacity. The study finds that DG development significantly enhances regional financial risk management capacity; data factorization plays a mediating role between DG and financial risk management capacity; the impact of DG on regional financial risk management capacity exhibits heterogeneity across regions with different land areas; and the impact also varies across regions with different tax burdens.

Suggested Citation

  • Zhu, Nina & Wei, Anyun & Yang, Zongpu, 2026. "How digital government shapes financial risk management capacity: an empirical analysis based on the data factorization path," Finance Research Letters, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:finlet:v:89:y:2026:i:c:s1544612325025139
    DOI: 10.1016/j.frl.2025.109264
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    References listed on IDEAS

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