How Does Digital Finance Affect Sports Enterprise Innovation? Evidence from Chinese Sports Listed Enterprises

Abstract

In the context of the digital economy, digital finance has emerged as a new driving force for the sustainable and high-quality development of the sports industry. The sports industry promotes economic growth, social well-being, and environmental sustainability. However, the sustainable development of the sports industry faces challenges such as insufficient innovation and a lack of diverse financing channels. This study has investigated the impact of digital finance on sports enterprise innovation in China, focusing on the mediating role of financing constraints. Employing a panel dataset of 95 listed Chinese sports enterprises from 2011 to 2020, we conducted random-effects GLS regression and mediation analyses to examine the interrelationships among digital finance, financing constraints, and sports enterprise innovation. The empirical results have confirmed the positive role of digital finance in promoting sports enterprise innovation and alleviating financing constraints. Financing constraints negatively influence sports enterprise innovation and partially mediate the relationship between digital finance and innovation. The heterogeneity analyses have revealed that the impact of digital finance on innovation was more pronounced in the eastern region of China, and among both the major and small and mid-sized sports enterprises, with the latter potentially benefiting more. Our findings have highlighted the transformative potential of digital finance in driving inclusive innovation within the sports industry by providing accessible financing solutions and reducing information asymmetries. This study has contributed to the literature on digital finance, financing constraints, and enterprise innovation in the sports industry context, offering valuable insights for sports enterprises, policymakers, and financial institutions in leveraging digital finance to foster innovation-driven growth.