Promoting corporate financing efficiency through digital finance and sustainable practices

Muhammad Suhrab, Chen Pinglu and Ningyu Qian

Journal of Sustainable Finance & Investment, 2024, vol. 14, issue 4, 843-869

Abstract: This paper explores the impact of digital finance (DFI) and environmental performance (EP) on corporate financing efficiency (FE) in China's property sector. The research addresses two main questions: How do digital finance and environmental performance influence corporate financing efficiency? What are the policy implications of these influences for enhancing green transformation in the sector? Employing robust techniques, including fixed-effect regression and a difference-in-differences (DID) approach. The study reveals that DFI and EP have a significant positive effect on FE. The analysis demonstrates that higher levels of DFI and improved EP lead to more effective allocation and utilization of financial resources. The DID results further indicate that an increase in DFI contributes to a significant enhancement in FE with a one-year lag, without violating the parallel trends assumption. The study shows that integrating digital finance and environmental sustainability improves financial efficiency. It urges policymakers to promote investments in digital financial technologies.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/20430795.2024.2401361 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jsustf:v:14:y:2024:i:4:p:843-869

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TSFI20

DOI: 10.1080/20430795.2024.2401361

Access Statistics for this article

Journal of Sustainable Finance & Investment is currently edited by Dr Matthew Haigh

More articles in Journal of Sustainable Finance & Investment from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().