Blockchain technology concerns and corporate financial risk prevention—A quasi-natural experiment for Chinese listed A-share companies

Kaike Wang, Xin Zhang and Shuhong Wang

Economic Analysis and Policy, 2024, vol. 81, issue C, 1496-1512

Abstract: The rapid development of blockchain technology (BT) has gained widespread attention from all sectors of society. In order to remain competitive, enterprises have responded positively to this research and development, which is conducive to the enhancement of their own digital construction. BT can provide technical support for companies to strengthen their internal management and reduce business risks caused by information asymmetry. However, the ability to reduce enterprise financial risk effectively depends on the breadth and depth of BT concerns. This study constructs word-frequency statistical variables of BT concerns based on the annual report data of listed companies. It conducts an empirical study on the issue of BT concerns affecting corporate financial risk prevention and regulation based on a propensity score matching difference-in-difference model. The results show that: (1) Attention to BT significantly reduces corporate financial risk (2) In terms of the mechanism effect, Attention to BT can significantly reduce corporate financial risk by optimizing accounts receivable management, enhancing debt servicing ability, and improving corporate performance. (3) The heterogeneity analysis shows that the concern of BT in reducing financial risk is even more significant for enterprises whose social responsibility is not effectively regulated and for hybrid enterprises. This study enriches the literature on the mechanism of BT to enterprise financial risk and provides a reference for both enterprise-level blockchain concerns and strengthening enterprise financial risk management.

Keywords: Blockchain; Financial risk; Accounts receivable management; Solvency; Corporate Performance (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:81:y:2024:i:c:p:1496-1512

DOI: 10.1016/j.eap.2024.02.028

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