Author(s)

Ruicong Cai

Corresponding Author

Ruicong Cai

ABSTRACT

Digital finance as an innovative and increasingly popular financial service has brought about a huge impact on the investment efficiency of companies. This paper assesses the relationship between the coverage breadth of digital finance and corporate investment efficient by using data from 2011 to 2018 from Beijing University's Digital Inclusive Finance Index and A-share listed companies in Shanghai and Shenzhen, by conducting ordinary least square regression analysis and heterogeneity analysis on the figures, and by passing a robustness test. The results indicate that the growth of digital finance will reduce corporate investment efficiency, and corporate investment efficiency is not associated with the scale of enterprises. The role of other factors on enterprise investment efficiency is also mentioned. The research in this paper has made it possible to realize that the rise of digital finance will not only benefit companies but that companies need to take steps to reduce the of digital finance and improve their efficiency investments wherever possible.

KEYWORDS

Corporate, digital finance, investment efficient