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Digital trade, legal environment, and corporate financing constraints: Evidence from China

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  • Zhou, Siyu
  • Gao, Yunyi

Abstract

This study empirically examines the impact of digital trade on corporate financing constraints and its operational boundaries, using cross-border listed companies on China's A-share market from 2015 to 2024 as the sample. The findings reveal: firstly, digital trade significantly alleviates financing constraints for cross-border enterprises; secondly, a favourable legal environment amplifies this alleviating effect; furthermore, this mitigating impact is more pronounced among non-state-owned enterprises and firms in highly competitive industries. This research provides micro-level evidence for understanding the economic consequences of digital trade and offers insights for optimising institutional environments to empower corporate digital transformation.

Suggested Citation

  • Zhou, Siyu & Gao, Yunyi, 2026. "Digital trade, legal environment, and corporate financing constraints: Evidence from China," Finance Research Letters, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:finlet:v:93:y:2026:i:c:s1544612326001534
    DOI: 10.1016/j.frl.2026.109622
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    References listed on IDEAS

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