Research On The Impact Of Digital Finance On The Financing Structure Of Entity Enterprises

The financing decision of an enterprise is an important part of the process of business development,and the financing structure of an enterprise is an indispensable part of the financing decision.Affected by China’s financial system and capital market,the financing of entity enterprises is mainly represented by debt financing represented by bank loans,and the leverage ratio is relatively high,which causes greater debt risks to entity enterprises.In recent years,digital finance has gradually emerged,and digital technologies such as artificial intelligence have had an important impact on traditional financial institutions and enterprises.This paper studies the impact of digital finance on the financing structure of entity enterprises,and explores whether digital finance improves and optimizes the financing structure of entity enterprises,which is related to the operation and development of entity enterprises and contributes to the healthy operation of market economy.This paper sorts out the relevant research on digital finance and corporate financing structure at home and abroad,analyzes the impact of digital finance on the financing structure of entity enterprises at the theoretical level,and puts forward corresponding hypotheses based on this.In empirical research,based on the data of A-share listed entities in Shanghai and Shenzhen from 2011 to 2020 and the digital inclusive financial index of Peking University,this paper uses fixed effect and intermediary effect models to empirically test the impact of digital finance on the financing structure and intermediary mechanism of entity enterprises,and analyzes the heterogeneity of regions,enterprise scale,property rights properties and enterprise life cycle.The results show that:(1)Digital finance has a significant positive impact on the endogenous financing and equity financing of entity enterprises,and has a negative impact on the debt financing of entity enterprises.From the comparison between different financing methods,compared with endogenous financing,the increase of digital finance to equity financing of entity enterprises is more obvious.Compared with debt financing,digital finance has increased more to endogenous financing and equity financing.(2)Digital finance increases the endogenous financing of entity enterprises by improving cash turnover,increases equity financing of entity enterprises by reducing equity financing costs,and reduces debt financing of entity enterprises by reducing leverage.(3)The positive effect of digital finance on the equity financing of entity enterprises in the central and northeastern regions is more obvious,and the negative effect on the debt financing of entity enterprises in the western region is more obvious;The impact of digital finance development on non-state-owned enterprises is consistent with that of the total sample,but the impact on debt financing of state-owned enterprises is not significant.Digital finance has increased large-scale enterprise equity financing and reduced equity financing and debt financing for small-scale enterprises.Digital finance will increase endogenous and equity financing for enterprises in the growth stage,increase its endogenous financing and reduce debt financing for enterprises in the mature stage,and only have a positive impact on equity financing for enterprises in the recession period.This paper studies the relationship between digital finance and the financing structure of entity enterprises,enriches the research on digital finance,and provides a new perspective for the entity economy of digital financial services.Based on the conclusion that the development of digital finance can improve and optimize the financing structure of entity enterprises,this paper gives three policy suggestions:(1)improve the digital financial system,focusing on improving the coverage and depth of use of digital finance;(2)To support the development of digital finance,targeted policies should be implemented according to the city and enterprises;(3)Improve the relevant systems and laws and regulations of the data industry to ensure the healthy and stable development of digital finance.(4)Improve the internal control of digital financial risks and improve digital financial risk management.