Abstract
As a part of the national economy, Small and Medium-sized enterprises play a role in promoting a country's economy, but most studies show that financing constraints hinder the innovation and development of small and Medium-sized enterprises. This paper analyzed the effect of descriptive statistics, robustness test, and heterogeneity analysis to explore the impact of digital financial development on small and Medium-sized enterprises' financing constraints. Research shows that with the increase of the digital finance index, financing constraint tends to decrease. Therefore, the development of digital finance plays a positive role in the financing constraints of small and Medium-sized enterprises.
Highlights
Digital finance refers to a new financial business model in traditional financial institutions, and Internet companies use digital technology to achieve financing, payment, and investment
As the research purpose of this paper is to explore the relationship between the development of digital finance and China's SMEs, the data of Listed SMEs in China are selected as the research data [10]
The results show that the regression coefficients of the Aggregate Index in the benchmark model are all significantly negative, and the development of inclusive digital finance is helpful to ease the financing constraints of SMEs
Summary
Digital finance refers to a new financial business model in traditional financial institutions, and Internet companies use digital technology to achieve financing, payment, and investment. With the progress of the times, the digital financial system has provided great help for corporate borrowing. Larger companies have easier access to credit support from traditional financial institutions, but SMEs often face credit rationing. Digital finance provides credit funds for SMEs in the credit market through digital commercial credit evaluation methods such as big data, easing the financing constraints of SMEs. Digital finance mainly provides credit support for the long-tail market dominated by SMEs, helping alleviate "ownership discrimination" and "scale discrimination" in the credit market and improving the efficiency of financial resource allocation
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