Dawn in enterprises' financial difficulties: The significance of digital financial awareness in mitigating hardship

Ruide Tu, Yitang Zeng, Su Zhang and Yifu Zhou

International Review of Economics & Finance, 2025, vol. 103, issue C

Abstract: This study investigates a crucial yet overlooked question: Can improved digital financial awareness effectively remedy corporate financial hardship in an era where digital finance transforms global economic landscapes? Utilizing theoretical frameworks and empirical data, we demonstrate that organizations possessing advanced digital financial literacy—characterized by their capacity to interpret, utilize, and innovate with digital financial tools—are not only adapting to the digital world but excelling within it. Through meticulous analysis, we identify three interconnected mechanisms that underpin this resilience: digital financial awareness enhances corporate governance by promoting transparency and accountability, alleviates financing constraints through data-driven solutions that address information disparities, and elevates total factor productivity by optimizing resource allocation and expediting technological adoption. This relief is not uniform; it is especially significant among non-state-owned firms that lack conventional financial advantages and in areas with weak financial intermediaries, where digital finance addresses systemic gaps. This study delineates a trajectory wherein digital financial literacy is fundamental to sustained business well-being in an ever-digitizing landscape.

Keywords: Digital financial awareness; Financial woes; Total factor productivity (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025007117

DOI: 10.1016/j.iref.2025.104548

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