Author(s)

Yang Hu

Corresponding Author

Yang Hu

ABSTRACT

The earliest that Inclusive Finance had been proposed by the United Nations in 2005. The Chinese government introduced Inclusive Finance development as a national strategic goal in 2013. It follows that digital finance is still a new concept. In recent years, with the development of electronic information technology. Finance services started to speed up the digital transformation. The digital finance coverage breadth of cities in China is increasing year by year. This paper will research that if the digital finance coverage breadth has a positive influence on the enterprise's value. This paper uses the PKU Digital Financial Inclusion index and collects 337 cities’ indexes in China from 2011 to 2018. On the side of enterprises, this paper collects A-share listed companies as object information. This paper chose the OLS regression analysis model to research the digital coverage influence on enterprises and use the fixed-effects model to do the robustness test. The result shows that the digital finance coverage breadth has a positive influence on increasing the enterprise's value on the share market. This paper also does the heterogeneity analyses to research if the digital finance coverage has a different influence on large-scale and small-scale enterprises. The result shows that coverage breadth influence on large-scale and small-scale enterprises does not have a significant difference or heterogeneous influence. At last, concluding the whole paper, conclude that digital finance coverage breadth has a positive influence on large-scale and small-scale enterprises’ value on the share market.

KEYWORDS

Digital Finance, Coverage Breadth, Enterprise value, Empirical Research