DefinePK

Abstract

Over the last 10 years, digital banking has grown fast thanks to digital technologies such as big data, cloud computing, and blockchain. Its broad reach, low cost, and low threshold have the potential to boost innovation. Based on this backdrop, this paper investigates the impact and mechanism of digital financing on corporate innovation using data from China’s A-share listed businesses from 2012 to 2022. At the same time, the institutional environment is employed as a regulatory variable to further investigate the link between digital finance and business innovation to encourage Digital finance is better for the actual economy.