Proceedings of the
The Nineteenth International Conference on Computational Intelligence and Security (CIS 2023)
December 1 – 4, 2023, Haikou, China
The Impact of Digital Finance on Corporate Risk Taking
City College of Dongguan, Dongguan, China.
ABSTRACT
This research aims to investigate the impact of digital finance on corporate risk-taking. Digital finance combines modern information technology with traditional financial services, significantly influencing the development of modern businesses. This study focuses on New Third Board (an over-the-counter stock market in China) enterprises from 2011 to 2020 as our research subjects. Through empirical testing and analysis, we aim to uncover the effects of digital finance on small and medium-sized enterprises (SMEs) risk-taking. The research findings indicate that the Digital Finance Index significantly impacts corporate risk-taking. An increase in the financial index is positively correlated with an increase in the level of risk-taking by businesses. This suggests that companies can more easily access financing as the financial environment improves, thereby enhancing their capacity to take on risks. Furthermore, company size and sales growth rate positively influence risk-taking capacity, while the asset-to-liability ratio harms risk-taking capacity. These research results provide valuable insights for businesses to develop effective risk management strategies and make informed financial decisions.
Keywords: Digital finance, Business, Risk-taking.
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City College of Dongguan, Dongguan, China.
ABSTRACT
This research aims to investigate the impact of digital finance on corporate risk-taking. Digital finance combines modern information technology with traditional financial services, significantly influencing the development of modern businesses. This study focuses on New Third Board (an over-the-counter stock market in China) enterprises from 2011 to 2020 as our research subjects. Through empirical testing and analysis, we aim to uncover the effects of digital finance on small and medium-sized enterprises (SMEs) risk-taking. The research findings indicate that the Digital Finance Index significantly impacts corporate risk-taking. An increase in the financial index is positively correlated with an increase in the level of risk-taking by businesses. This suggests that companies can more easily access financing as the financial environment improves, thereby enhancing their capacity to take on risks. Furthermore, company size and sales growth rate positively influence risk-taking capacity, while the asset-to-liability ratio harms risk-taking capacity. These research results provide valuable insights for businesses to develop effective risk management strategies and make informed financial decisions.
Keywords: Digital finance, Business, Risk-taking.
Download PDF