Research On The Impact Of Digital Finance On Financing Constraints Of SMEs

In recent years,small and medium-sized enterprises have been growing rapidly,which are playing an important role in promoting employment,stimulating market vitality,and maintaining social stability.According to the fourth economic census,SMEs have provided 79.4% of the population with employment posts,which are deemed as one of the backbone forces in promoting high-quality economic development.During the period of the growing SMEs,a stable source of funds is one of the most important guarantees to maintain the sustainable development of SMEs.However,small and medium-sized enterprises still have financing constraints in the traditional financial market,and problems such as difficult and costly financing have been constraining their development.As a new financial development model,digital finance can utilize digital technology to promote high-quality economic development and inclusive growth,complement the weaknesses of traditional finance,and provide a new path to solving the financing problems of SMEs.Firstly,this article reviews the existing literature and summarizes the current development situation of digital finance in China,the constraints and mitigation paths in the financing process of small and medium-sized enterprises.Secondly,based on the long tail theory,information asymmetry theory,principal-agent theory,and internal control theory,this article analyzes the impact of digital finance on financing constraints of SMEs,as well as the path of dual agency costs and internal control quality.In further research,it analyzes the differences in the impact of digital finance on financing constraints of SMEs with different information disclosure qualities and property rights,and then proposes the research assumptions of this article.Finally,based on the2011-2021 digital financial provincial index and the relevant data of SMEs on the SME board and the GEM,a regression model is established to empirically test the above assumptions,and the conclusions are as follows:Firstly,digital finance can alleviate the financing constraints of SMEs,and the two dimensions of digital finance coverage and depth of use also have a mitigating effect on the financing constraints of small and medium-sized enterprises.Secondly,dual agency costs and internal control quality have a partial intermediary effect,and digital finance can alleviate financing constraints for s SMEs through two paths: reducing dual agency costs and improving internal control quality.Thirdly,digital finance can more alleviate the financing constraints of SMEs with high quality information disclosure.Fourth,digital finance can more alleviate the financing constraints of non-state owned SMEs.Based on the above conclusions,this article proposes the following recommendations: The government should strengthen the construction of digital finance infrastructure,narrow the development differences between different regions of digital finance,give full play to the inclusive advantages of digital finance,strengthen top-level design,provide policy support for the development of digital finance,and promote the deep integration of digital finance and the real economy.At the same time,it should also pay attention to improving relevant regulatory systems and increase the punishment of illegal acts to create a good business environment.Financial institutions should seize the development opportunities of digital finance,utilize digital technology to innovate financial products,enrich the types of financial products,transform the credit evaluation model,and improve the online credit evaluation system,in order to reduce the information search costs and operational risks of financial institutions.Small and medium-sized enterprises should improve their management system,reduce the degree of information asymmetry,improve the quality of information disclosure,enhance their credibility,and actively release positive signals about financing to financial institutions,thereby improving their competitiveness and easing financing constraints.