Research On The Impact Mechanism Of Digital Finance On Corporate Bond Credit Risk

Debt financing by enterprises can prevent the non-performing loan crisis caused by over-reliance on banks.Therefore,since the establishment of corporate bonds in my country in 2007,bond issuers have rapidly penetrated into all walks of life,and the types of bonds have become increasingly abundant and scale.But after a period of rapid expansion,it also ushered in a wave of bond defaults.Due to insufficient profitability,many companies cannot pay the principal and interest of bonds in a timely manner,resulting in frequent corporate bond defaults.Meanwhile,because my country’s bond market started later than developed countries,the bond market information disclosure system and supervision system are not perfect,causing adverse selection and moral hazard problems,resulting in increasingly serious bond defaults.As companies gradually combine financial services with Internet information technology,digital finance has played an important role in reducing corporate costs,improving corporate economic benefits,and alleviating information asymmetry in the financial market,providing new ideas for preventing and resolving bond default risks.So based on this background,this paper discusses the impact mechanism of digital finance on corporate bond credit risk.This will help to more comprehensively and accurately identify the influencing factors of corporate bond credit risk,strengthen the risk management and control of the company,promote the company’s development,and safeguard the interests of investors and creditors.Firstly,this paper conducts a theoretical analysis on the impact mechanism of digital finance on corporate bond credit risk by consulting relevant literature,and proposes research hypotheses.Secondly,according to the time of the first bond default in China,companies that issued corporate bonds on the Shanghai and Shenzhen stock exchanges from 2014 to 2020 were selected as the research objects.The corporate bond credit spread is used to measure corporate bond credit risk,and the Peking University Digital Inclusive Finance Index measures digital finance.Matching is done by the city where the bond issuing company is located to empirically test the correlation between digital finance and corporate bond credit risk,and further explore its impact.Thirdly,the heterogeneity test is carried out based on the secondary indicators of digital finance,bond credit rating and whether the company is listed.Finally,the reliability of the results is verified by a robustness test.According to the research results,the following conclusions are drawn: First,digital finance has a significant negative impact on corporate bond credit risk.Second,corporate profitability has a partial intermediary effect in the impact of digital finance on corporate bond credit risk,while information asymmetry has no intermediary effect in the impact of digital finance on corporate bond credit risk.Third,from the heterogeneity test,it can be seen that among the secondary indicators of digital finance,the degree of digitization has the greatest impact on the credit risk of corporate bonds,followed by the depth of use and the smallest coverage.According to the classification of bond credit ratings,digital finance has a greater impact on the credit risk of corporate bonds with lower ratings.In addition,compared with listed companies,digital finance has a greater impact on the credit risk of unlisted corporate bonds.According to the research conclusions,for China’s corporate bond credit risk issues,the following three suggestions are mainly put forward: First,since digital finance can significantly negatively affect the credit risk of corporate bonds,it is necessary to continue to promote the publicity of digital finance and the construction of Internet infrastructure,attach importance to the training of digital technical talents,and further strengthen the awareness of digital financial development.Second,since the degree of digitalization has a more significant impact on the credit risk of corporate bonds,it is necessary to continue to promote the construction of corporate infrastructure and encourage digital transformation and development of enterprises,so as to provide more convenient financial services.Third,digital finance is a product of financial development.When strengthening the development of digital finance,relevant departments should also increase their supervisory capabilities and improve corresponding policies and regulations.