Does digital finance lessen credit rationing?—Evidence from Chinese farmers

Xu, Yue; Zhan, Ping; Sun, Zhaojun; Zhan, Huanqi; Li, Shuai

doi:10.1016/j.ribaf.2022.101712

Cited by 23 publications

(11 citation statements)

References 25 publications

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“…The results of the mechanism analysis show that DF increases firms’ motivation to meet low-income customers’ demands, which is achieved at the expense of environmental performance, leading to deteriorated EID. These results confirm the inclusive nature of DF, which has been demonstrated in previous studies (Song et al , 2020; Xu et al , 2022). However, our study takes a new perspective by examining how the price sensitivity of low-income individuals influences the green behaviour of firms through the demand-driven channel.…”

Section: Discussionsupporting

confidence: 92%

“…DF has profoundly changed the operating environment of enterprises, significantly increasing the uncertainty of the external environment. The inclusive nature of DF has made financial services accessible to a wider group of people, especially the low-income group, easing their financing constraints and stimulating consumption among this group (Li et al , 2020; Song et al , 2020; Xu et al , 2022). For example, Song et al (2020) presented evidence that DF significantly promotes household consumption, and these effects are much larger for rural households and poorer households in China.…”

Section: Theoretical Framework and Hypotheses Developmentmentioning

confidence: 99%

“…For example, Song et al (2020) presented evidence that DF significantly promotes household consumption, and these effects are much larger for rural households and poorer households in China. Xu et al (2022) suggest that DF significantly reduces farmers’ credit rationing.…”

Section: Theoretical Framework and Hypotheses Developmentmentioning

confidence: 99%

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The dark side of digital finance: evidence from environmental information disclosure of Chinese listed companies

Guo

Jiang

2023

SAMPJ

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Purpose This study aims to explore the relationship between corporate environmental information disclosure and digital finance. Design/methodology/approach The authors used Chinese listed enterprises as the sample. Data on digital finance are from the China Digital Inclusive Finance Index published by the Institute of Digital Finance of Peking University, and corporate environmental information disclosure is collected from the China Securities Market and Accounting Research database. Multivariate regression and Stata software were used for data analysis. Findings The findings suggest that digital finance significantly inhibits firms’ environmental information disclosure. Digital finance increases firms’ motivation to meet low-income customers’ demands, which is achieved at the expense of environmental performance, leading to deteriorated environmental information disclosure. Furthermore, this inhibitory effect is exacerbated by managerial power but mitigated by institutional shareholdings and political connections. Practical implications The findings have important implications for policymakers and managers when formulating relevant policies regarding the co-development of digital finance and corporate environmental information disclosure. Social implications Environmental information disclosure is a crucial element in CSR disclosure quality. Originality/value This study enriches the literature on the environmental influences of digital finance by examining the relationship between digital finance and corporate environmental information disclosure, a crucial way through which external stakeholders obtain information about corporate environmental behaviours.

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Section: Discussionsupporting

confidence: 92%

Section: Theoretical Framework and Hypotheses Developmentmentioning

confidence: 99%

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The dark side of digital finance: evidence from environmental information disclosure of Chinese listed companies

Guo

Jiang

2023

SAMPJ

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“…Previous studies have reached the consensus that digital inclusive finance can relieve financing constraints by reducing information asymmetry. However, considering the natural risk in agricultural operations, it is still unclear whether digital inclusive finance can effectively support the agricultural sector [ 25 , 69 ]. By investigating the effect of digital inclusive finance (DIF) on the operating income of agricultural enterprises, this study provides evidence that, overall, digital inclusive finance can improve the operating income of agricultural enterprises and thus enhance food security.…”

Section: Discussionmentioning

confidence: 99%

“…In addition to financial support, digital finance inclusive is examined as a means of aiding the promotion of agricultural green total factor productivity [ 21 , 22 ] and e-commerce in rural areas [ 23 ]. However, due to unbalanced levels of urban and rural development [ 24 ], it remains unclear whether digital inclusive finance supports agricultural businesses [ 25 ]. Thus, it is meaningful to investigate the effect of digital inclusive finance on the sales of agricultural products in order to better maintain smooth food supply chains covering both urban and rural areas.…”

Section: Introductionmentioning

confidence: 99%

Enhancing Food Security through Digital Inclusive Finance: Evidence from Agricultural Enterprises in China

Huang

Azman

2023

IJERPH

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As a means of enhancing food security, efficient agricultural processing and the maintenance of a smooth supply chain are essential for ensuring food quality and reducing food wastage. Agricultural enterprises play a crucial role in the processing and transportation of food from farms to dinner tables. Operating income growth plays the vital role of ensuring that agricultural enterprises function in a stable manner while also indicating the quantity and quality of market food supply. Therefore, the objective of this study is to explore the impact of digital inclusive finance on food security by analyzing the effect of digital inclusive finance on the operating income of agricultural enterprises in China. By applying pooled OLS analysis to Chinese agricultural enterprises that are listed in the National Equities Exchange and Quotations, this study finds that digital inclusive finance can help improve agricultural operating income. The results reveal that digital inclusive finance can facilitate the promotion of agricultural operating income by increasing the supply of financing, accelerating inventory liquidity, and supporting investment in research and development. In addition, this study concludes that digital inclusive finance is more effective for increasing agricultural operating income as a result of its wider coverage and deeper utilization. Furthermore, the development of traditional finance is still necessary for the digitization of digital inclusive finance to be effective.

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