Research on the Impact of Digital Inclusive Finance on Corporate Financing Cost: Theoretical Mechanism and Empirical Test

Based on the data of A-share non-financial listed companies from 2011 to 2023, this paper matches the Peking University prefecture-level city digital inclusive finance index with corporate financial data, and empirically examines the impact of digital inclusive finance on corporate financing cost and its mechanism of action. Financing cost is measured by the financial expense ratio, and the industry and year fixed effects model is used for estimation. The study finds that the increase of the regional digital inclusive finance development level significantly reduces corporate financing cost; the mechanism analysis shows that digital inclusive finance plays its role by improving the external information environment of enterprises and raising analyst following and research report coverage. The heterogeneity analysis shows that this effect is more obvious in non-state-owned enterprises, the eastern region and larger-scale enterprises. The study provides an empirical basis for improving digital financial infrastructure, optimizing corporate credit information governance and differentiated credit pricing.

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Publication Details

Journal
Advances in Economics Management and Political Sciences
Published
2026-11-10
DOI
https://doi.org/10.54254/2754-1169/2026.ab38670
Primary Topic
FinTech, Crowdfunding, Digital Finance
Type
article
Field-Weighted Citation Impact
0.00
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article

Research on the Impact of Digital Inclusive Finance on Corporate Financing Cost: Theoretical Mechanism and Empirical Test

Siqi Hou
Advances in Economics Management and Political Sciences
FinTech, Crowdfunding, Digital Finance
article

Research on the Impact of Digital Inclusive Finance on Corporate Financing Cost: Theoretical Mechanism and Empirical Test

Siqi Hou
article en

Abstract

Based on the data of A-share non-financial listed companies from 2011 to 2023, this paper matches the Peking University prefecture-level city digital inclusive finance index with corporate financial data, and empirically examines the impact of digital inclusive finance on corporate financing cost and its mechanism of action. Financing cost is measured by the financial expense ratio, and the industry and year fixed effects model is used for estimation. The study finds that the increase of the regional digital inclusive finance development level significantly reduces corporate financing cost; the mechanism analysis shows that digital inclusive finance plays its role by improving the external information environment of enterprises and raising analyst following and research report coverage. The heterogeneity analysis shows that this effect is more obvious in non-state-owned enterprises, the eastern region and larger-scale enterprises. The study provides an empirical basis for improving digital financial infrastructure, optimizing corporate credit information governance and differentiated credit pricing.

Advances in Economics Management and Political SciencesVol. 312(1)
Huazhong University of Science and Technology (CN)
FinTech, Crowdfunding, Digital Finance
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