The Impact of Digital Infrastructure Development on Corporate Finance

This paper selects the data of all A-share non-financial listed companies from 2010 to 2022 as the research sample, and empirically tests the effect of the ‘Broadband China’ strategy on the financing constraints of enterprises in the policy implementation area using the staggered DID method. It is found that the implementation of the ‘Broadband China’ strategy can effectively alleviate the financing constraints of enterprises, and this conclusion still holds after the robustness tests such as the parallel trend test and the placebo test. The mechanism analysis shows that the ‘Broadband China’ strategy can alleviate the financing constraints of enterprises by alleviating the information asymmetry,mitigating the principal-agent problem.The results of heterogeneity test show that the easing effect of ‘broadband China’ strategy on financing constraints is more obvious in enterprises which state-owned, eastern region, and low institutional investors. This paper provides evidence that the ‘Broadband China’ strategy can alleviate the financing constraints of enterprises.