Analysis On The Impact Of Digital Finance On Corporate Green Innovation

After reform and opening up,the crude economic growth method has made the economic development and ecological environment incompatible.The Fifth Plenary Session of the 19th Central Committee introduced the development concept of "innovation,coordination,green,openness and sharing".At the same time,General Secretary Xi Jinping also proposed in the report of the 20th National Congress that in order to promote green development,it is necessary to accelerate the green transformation of development methods.The key to implementing green innovation-driven development strategy lies in improving the enthusiasm of corporates for green innovation and green innovation efficiency.Green innovation projects of corporates are characterized by long cycle time,high cost and high risk,requiring long-term and substantial investment of capital elements.The traditional financial system dominated by commercial banks is mainly guided by profitability and risk control,which is inadequate in serving the green development of the real economy.Digital finance participates in the financial market as a new competition and competitive subject,which helps to promote corporates to solve the financing dilemma of green innovation projects and provides a new support perspective to promote the development of green innovation in corporates.This thesis begins with an analysis based on long-tail theory,financial development theory and information asymmetry theory.Based on the combing of related literature and the development status of digital finance and corporate green innovation,the direct and indirect impact mechanisms of digital finance on corporate green innovation are theoretically analyzed.For the empirical study,on the basis of the panel data of Chinese listed companies from 2011 to 2021,fixed-effects model for panel data is used to investigate the impacts of digital finance on corporate green innovation.In particular,the impacts of three sub-dimensions of digital finance on corporate green innovation are included in.Heterogeneity analysis is also carried out further to identify the differential impact of digital finance on corporate green innovation under different corporate types and different regions.Based on the perspectives of information asymmetry and financing constraints,an intermediary effect model is followed to explore the transmission mechanism of digital finance to corporate green innovation.Then,the thesis further examines the regulatory effect of investor short-sightedness and corporate social responsibility.Ultimately,based on the findings of this study and in conjunction with China’s 14th Five-Year Plan,a decision basis is provided to indicate the direction of digital finance development and to further accelerate the construction of a green innovation-driven society.We have reached a series of rich and interesting conclusions.First,as a new financial service model,digital finance is promoting corporate green innovation.In addition,the breadth of digital finance coverage has a greater role in promoting corporate green innovation compared to the depth of use and the degree of digitalization.Second,digital finance can facilitate corporate green innovation by alleviating information asymmetry and alleviating financing constraints.What’s more,the facilitation effect of the information asymmetry alleviation channel is the greatest.Third,the relationship between digital finance and corporate green innovation is negatively regulated by investor short-sightedness and positively regulated by corporate social responsibility.Fourth,digital finance has a greater role in promoting green innovation for non-state corporates,mature corporates,corporates in the Midwest and corporates in areas with weaker financial regulatory intensity.Based on the above findings,the following inspiring recommendations are put forward to better accelerate the development of digital finance and promote corporate green innovation.First,more policies should be developed to promote digital finance to empower the development of corporate green innovation.Second,the transmission channel of the impact of digital finance on corporate green innovation should be unblocked.Third,differentiated corporate green innovation strategy and digital finance development strategies should be implemented according to local conditions.