Research On The Impact Of Digital Inclusive Finance On The Financialization Of Real Enterprise

From 2000 onwards,the value added of the financial sector in China climbed all the way up to 7.78% of GDP in 2019.This upward trend has become more pronounced especially since 2013,but there has been a series of downward trends in the real economy in the broad sense and in the value added of industry as a share of GDP.As a result of the shrinking real economy and the booming virtual economy,a large number of real enterprises have shown signs of "de-realisation" and have "squeezed" their main business,over-investing their resources in the financial sector.Although such a practice can yield high short-term yields for enterprises,it has resulted in the "hollowing out" of the real sector,causing irreversible damage to the real economy."Since the 13 th Five-Year Plan,General Secretary Xi Jinping has repeatedly given important instructions and made clear requirements on the development of the real economy,stressing that the real economy is the foundation of a country’s economy,the fundamental source of wealth creation,and an important pillar of national strength.The development of the real economy can protect people’s livelihood and increase effective supply.No matter how far the economy has developed,the focus of economic development is to boost the real economy.With the rise of digital inclusive finance,the competitive landscape of the financial industry has been transformed,reducing fragmentation and friction in the financial market,while also profoundly affecting the investment behaviour of businesses.Digital inclusive finance combines advanced digital technology to alleviate information asymmetry,reduce corporate agency costs,expand the radius of financial services,alleviate corporate financing constraints and reduce corporate financing costs,enabling companies to access capital more easily,but the impact of access to capital on the economy depends on how companies allocate capital.By studying the impact of digital inclusive finance on the financialisation of real enterprises,this thesis provides some reference for guiding the development of digital inclusive finance and the real economy.In order to explore in depth the impact of digital inclusive finance on the financialisation of real enterprises,this thesis is analysed in these six parts.The first part introduces the research background and significance of this thesis,draws out the research theme and clarifies the framework and ideas of the article,and introduces the theoretical innovation and practical significance of the article.The second part analyses and compares the existing literature to understand the current situation of research at home and abroad and to provide some theoretical references for the study of this thesis.The third part of the thesis combines theoretical knowledge to analyse the impact mechanism and channel analysis of digital inclusive finance on the financialisation of real enterprises and puts forward the theoretical hypothesis.The fourth part briefly introduces the selection and sources of the sample and gives explanatory notes on the explanatory variables,explained variables and control variables.The fifth part of the thesis constructs a two-way fixed effects model to analyse the impact of digital inclusive finance on the financialisation of real enterprises by studying the data of A-share listed companies in Shanghai and Shenzhen from 2011 to 2020,and analyses the moderating mechanism and channels of influence,and also conducts a heterogeneity analysis in four aspects,including the region to which the enterprises belong,life cycle,industry and attributes,and uses two different empirical methods to test the robustness of The reliability of the empirical results is ensured.The sixth section presents the findings of the study and makes policy recommendations on how to guide the development of digital inclusive finance and help real enterprises to "move from the virtual to the real".The conclusions based on the empirical analysis include: the development of digital inclusive finance has increased the financialisation of real enterprises;the mechanism test finds that digital inclusive finance has increased the financialisation of real enterprises by reducing financing costs and alleviating financing constraints;economic policy uncertainty affects the relationship between digital inclusive finance and the financialisation of real enterprises;the impact of digital inclusive finance on the financialisation of real enterprises in terms of the region,life cycle,industry and attributes of the enterprises;and the impact of digital inclusive finance on the financialisation of real enterprises.The effect of digital inclusion on the financialisation of real enterprises is heterogeneous in terms of region,life cycle,industry and attributes,and is more pronounced among enterprises in the eastern region,enterprises in decline,non-high-tech enterprises and state-owned enterprises,while the effect is smaller or insignificant among enterprises in the central and western regions,enterprises in growth phase,high-tech enterprises and non-state-owned enterprises.Based on the above findings,this thesis makes the following recommendations.First,improve the regulatory efficiency of the development of digital inclusive finance,integrate with the real economy,give full play to the advantages of digital inclusive finance,and promote the growth of the real economy.Secondly,the pace of financial sector reform should be accelerated to reduce monopoly profits and curb the profit-seeking motive of corporate financial market investment.Thirdly,enterprises should pay attention to the background of internal managers,allocate management teams in a reasonable manner,and control the proportion of managers with financial backgrounds to avoid managerial short-sightedness.Fourth,encourage enterprises to innovate on their own,promote the development of the real sector and enhance the profitability of the real sector.