THE IMPACT OF DIGITAL FINANCE ON LISTED ENTERPRISES' TOTAL FACTOR PRODUCTIVITY: BASED ON FINANCING CONSTRAINTS AND INVESTMENT EFFICIENCY

Abstract

Driven by the deepening integration of the digital economy and the real economy, digital finance has become a critical enabler for the high-quality development of enterprises. Based on the panel data of China’s A-share listed companies spanning from 2014 to 2023, this paper conducts an empirical investigation into the impact of digital finance on enterprise total factor productivity (TFP), as well as the underlying internal transmission channels of this effect. The baseline regression analysis demonstrates that digital finance exerts a significant positive promotional effect on enterprise TFP. The mechanism verification results indicate that digital finance improves TFP primarily by easing corporate financing constraints and elevating the efficiency of corporate investment. The heterogeneity analysis further shows that this promotional effect is more prominent for non-state-owned enterprises and firms located in China’s central region, while it is relatively weaker for state-owned enterprises and statistically insignificant for firms in the western region. A series of robustness tests and endogeneity treatments further confirm the reliability of the research conclusions. This paper expands the existing research on the integration between digital finance and the real economy, providing solid empirical support and targeted policy implications for advancing the development of digital finance and fostering the sustainable growth of enterprises.