Analysis Of The Impact Of Fintech On Corporate Debt Financing Cost

With the development of fintech,financial ecology gradually presents the trend of distributed and network.At the same time,the transaction cost will be reduced and the participants will be more diversified.Fintech has fundamentally improved various disadvantages of traditional finance,and is an important supplement of traditional finance,as well as an important aspect of improving China’s financial system.How to effectively reduce the debt financing cost of enterprises,especially the financing cost of small and private enterprises,has always been the key measure of government departments in stimulating the economic vitality of real enterprises.Financing cost determines whether various operational decisions of enterprises are feasible and effective,which is related to whether enterprises can win more profits and core competitive advantages.Through the advantages of big data and other information technologies,fintech will broaden financing channels,effectively reduce the degree of information asymmetry between enterprises and banks,and expand the coverage of financial services.So can it reduce the debt financing cost of companies? This paper selects the data of listed companies in Shanghai and Shenzhen stock markets from 2011 to 2018 as samples,and uses the digital Financial Inclusion Index provided by The Research Center for Digital Finance of Peking University and the financial data of CSMAR database to test the impact of fintech on corporate debt financing costs.The results show that with the deepening of regional fintech,the cost of corporate debt financing can be effectively reduced.Further research shows that the negative correlation between fintech and corporate debt financing cost is more significant in non-state-owned enterprises,high-tech enterprises and enterprises in western China.In the mechanism test,fintech expands financing channels through the advantage of information technology,reduces the information asymmetry between banks and other financial institutions and enterprises,and finally achieves the effect of reducing the debt financing cost of enterprises.In addition,many robustness tests and endogeneity tests,such as persistence test,substitution independent variable test,substitution dependent variable test,company-level fixed effect and instrumental variable method,were carried out in this paper,and the results were still robust,further supporting the hypothesis of this paper.On the one hand,this study helps to provide reference for assessing the economic effects of fintech development,and on the other hand,it also provides corresponding policy suggestions for solving the financing difficulties of enterprises,achieving the goal of "cost reduction" and promoting the healthy development of China’s financial system.