Author(s)

Yumeng Wu

Corresponding Author

Yumeng Wu

ABSTRACT

With the continuous progress and development of digital finance in China, many non-financial enterprises have gradually entered the scope of shadow banking activities. This paper uses panel data empirical analysis of A-share non-financial listed companies from 2011 to 2019 to find that the increase in the level of digital finance development will expand the scale of shadow banking of enterprises, and this effect is more significant in regions with high marketization; facing different ownership enterprises, the degree of impact of digital finance development on shadow banking of state-owned enterprises is more significant than that of non-state-owned enterprises. The mechanism test finds that an increase in the level of digital finance will relax the degree of financing constraints and make it easier for firms to obtain financing; this in turn has an impact on corporate shadow banking. This paper opens the study of digital finance as an explanatory variable and has important implications for financial markets to better serve the real economy.

KEYWORDS

Digital finance, Financing constraints, non-financial firms, Shadow banking