Does Digital Finance Alleviate Ownership Discrimination?—Evidence from the Financing of Chinese Listed Companies

The phenomenon of ownership discrimination exists widely in China’s financial market. Using data of A-share listed companies from 2011 to 2022, this study demonstrates that digital finance significantly mitigates credit disparities between state-owned and non-state-owned enterprises. Easing financing constraints, reducing information asymmetry and correcting capital mismatch are the three main mechanisms through which digital finance alleviates ownership discrimination. The findings suggest that digital finance can serve as a powerful tool in reforming financial systems and promoting equitable economic growth, providing valuable insights for policymakers and financial institutions aiming to leverage technology for economic inclusivity.