Abstract
In recent years, digital inclusive finance is growing rapidly in China. Based on the 5030 samples from the SME board and ChiNext board from 2011 to 2020, this paper discovered the incremental effect of digital inclusive finance on firm performance through panel data regression models. By using the digital inclusive finance development index to represent the level of digital inclusive finance and using return on equity to measure the business performances, this paper successfully figures out the quantitative relationship between these two variables. The digital financial inclusion, coverage breadth, and depth of usage all enhance the business performances of those companies. For SMEs in the eastern region, non-manufacturing industries, or with strong internal control capabilities, the development of digital inclusive finance will lead to the improvement of the business performance as well. The results not only enrich the relevant literature on the economic effect of digital inclusive finance but also provide empirical evidence for government and enterprises to stimulate economic growth.
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