Regional Fintech Development and Enterprise Digital Transformation: Theoretical and Mechanism Analysis

Abstract

In the context of the new round of technological revolution and industrial revolution, fintech has increasingly become the core driving force of economic development. The development of regional fintech is profoundly affecting the policy arrangements of relevant enterprises. Digital transformation is what enterprises must strive to achieve after entering the current data era, which will help enterprises to enhance their core competitiveness and brave the wind and waves in the digital era. Therefore, in this paper, the panel data of A-share listed companies in Shanghai and Shenzhen stock markets from 2011 to 2018 were used as the original samples, word frequency statistics related to enterprise digital transformation in the annual reports of listed companies were used to measure the degree of enterprise digital transformation, and the influence of regional fintech development on enterprise digital transformation and its mechanism were analyzed by measuring the level of regional fintech development. The study found that the development level of local fintech significantly has promoted the digital transformation of enterprises in their jurisdictions. Heterogeneity analysis shows that development of fintech has significant regional heterogeneity on the investment efficiency of enterprises. Its influence is concentrated in the eastern and central regions, but has no significant impact on enterprises in the western region. Mechanism analysis shows that the development of regional fintech alleviates the degree of information asymmetry of enterprises, increases the innovation input of enterprises, affects the strategic decision of sustainable innovation of enterprises, and thus promotes the digital transformation of enterprises. This paper discusses the influence of regional fintech development on the digital transformation of enterprises, analyzes the reasons from multiple perspectives, and provides important enlightenment for promoting the development of regional fintech and promoting the digital transformation of enterprises.