How does technology finance promote the high-quality development of firms? Evidence from China

Yuting Zhong and Xin Jin

Finance Research Letters, 2024, vol. 69, issue PB

Abstract: By constructing the provincial technology finance development index for China from 2011 to 2021 and aligning it with data from Chinese A-share listed companies, this paper empirically examines the effect of technology finance on the high-quality development of enterprises. The findings indicate that technology finance substantially boosts a firm's total factor productivity by alleviating financing constraints and fostering innovation. Furthermore, in regions with advanced industrial structure upgrades, technology finance demonstrates a more pronounced positive impact on enhancing a firm's total factor productivity. Additionally, compared to the central and eastern provinces of China, the positive effect is more significant in the western region.

Keywords: Technology finance; TFP; Financing constraints; Technological innovation (search for similar items in EconPapers)
JEL-codes: G18 G28 G32 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012157

DOI: 10.1016/j.frl.2024.106186

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