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Digital finance, capital misallocation and corporate innovation

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  • Zhu, Wenpeng

Abstract

This paper empirically analyses the impact mechanism of digital finance on corporate innovation, focusing on the mediating role of capital misallocation. The results show that digital finance significantly promotes corporate innovation, and capital misallocation plays a mediating role. Specifically, compared with state-owned enterprises, digital finance in non-state-owned enterprises is more significant in promoting corporate innovation. Additionally, compared with small and medium-sized enterprises, this promotion is more obvious in large enterprises. The findings of this paper pass the robustness test, indicating the reliability and validity of our results.

Suggested Citation

  • Zhu, Wenpeng, 2024. "Digital finance, capital misallocation and corporate innovation," International Review of Economics & Finance, Elsevier, vol. 96(PC).
    • Handle: RePEc:eee:reveco:v:96:y:2024:i:pc:s1059056024006889
    DOI: 10.1016/j.iref.2024.103696
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