Does Digital Finance Curb Small And Medium-sized Enterprises Financialization?

At present,China’s financial market is gradually mature,financial asset structure continues to deepen,promoting the rapid development of the economy.However,behind the rapid economic development,there are also some sharp problems.In recent years,under the influence of domestic and foreign,the development of some real industries is beset with difficulties,and the profitability of the industry continues to decline.At the same time,the high rate of return on capital in the financial and real estate sectors has attracted real enterprises to continuously shift funds to the financial sector.The pattern of corporate financialization is accelerating.Financial market is closely related to enterprises.In recent years,the close combination of finance and information technology has given birth to digital finance,which has become a "booster" to broaden the boundary of financial market,improve the accessibility of financial market and enrich the content of financial services.It must have an impact on the financialization of small and medium-sized enterprises(sems).Aimed to explore the relationship between the two,this paper uses the threshold model to study the impact of the two in China from 2011 to 2019 by matching the China Digital Financial Inclusion Index with the data of sems listed on SMES board and GEM board in China.In addition,considering the risk of different financial products,this paper further divides the structure of financial assets into risky financial assets and non-risky financial assets.After the study,it found that the faster the development of digital finance improves,the more inclined enterprises will be to reduce the holding of internal non-risky financial assets and increase the allocation of risky financial assets,and the impact also presents a marginal decreasing trend.Furthermore,this paper examines the intermediary mechanism between the two and finds that digital finance affects the financialization of sems by reducing financing constraints and improving investment efficiency of enterprises.The incremental contribution of this paper is mainly reflected in the following two aspects: First,from the perspective of digital finance,this paper enriches the research on the influencing factors of sems financialization,which has important practical significance;Secondly,based on the current reality of our country,this paper studies the influence of digital finance on the financialization of enterprises,especially the sems financialization and its internal logic.This paper will focus on revealing the mechanism of digital finance affecting the financialization of sems,and on this basis,put forward targeted policy suggestions for the development of digital finance in China.