Financing Constraints and Information Asymmetry of SMEs — the Development of Digital Finance and Financial Risks of Enterprises
Journal of the Knowledge Economy - Trang 1-21 - 2023
Tóm tắt
Due to the new technological revolution, digital finance and business development have also brought risks and challenges. Financial risk arises when the lack of effective and timely risk management leads to insufficient liquidity. The digital finance of Chinese micro-enterprises is the product of economic innovation. Due to the relatively unhealthy state of China’s financial market, there are certain uncertainties in the financial market, which can cause financial losses to the company and increase the uncertainty of the company’s financial activities and financial risks. On the other hand, the role of digital finance helps companies raise sufficient funds efficiently, cheaply, and quickly, reducing their motivation to obtain highly leveraged financing, reducing corporate debt, improving the stability of national financial risks, and thereby reducing financial risks. This paper studies the impact of the development of digital finance on the financial risks of non-financial companies listed on China’s A-share market from 2011 to 2020 and concludes that developing digital finance can reduce financial risks by reducing financial constraints and improving information asymmetry. Governance has a positive impact on regulating the relationship between the development of digital financial systems and corporate financial risks, especially the financial risks of small private companies that are limited by the development of digital financial systems. Secondly, from the perspective of economic constraints and data asymmetry, this article expounds the impact of the development mechanism of digital financial instruments on corporate financial risk. Thirdly, it analyzes the different impacts of the development of digital finance technology on corporate financial risk from the perspectives of enterprise size and ownership. Therefore, this article conducts an in-depth study of the limitations and information asymmetry of financing for small and medium-sized enterprises — the development of digital finance and corporate financial risks.
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