Digital Finance and Firm Exit: Mathematical Model and Empirical Evidence from Industrial Firms
From the perspective of financial constraint, this paper constructs a mathematical model to analyze the impact of digital financial development on firm exit probability. The relationship between digital finance and firm exit was tested empirically based on the industrial firm data in 2011–2013. The...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2021-01-01
|
| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2021/4879029 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832561364639416320 |
|---|---|
| author | Fenfen Ma Linxing Lei Ziyang Chen Mancang Wang |
| author_facet | Fenfen Ma Linxing Lei Ziyang Chen Mancang Wang |
| author_sort | Fenfen Ma |
| collection | DOAJ |
| description | From the perspective of financial constraint, this paper constructs a mathematical model to analyze the impact of digital financial development on firm exit probability. The relationship between digital finance and firm exit was tested empirically based on the industrial firm data in 2011–2013. The results show that digital financial development significantly suppresses firm exit probability. Mechanism analysis suggests that digital financial development can ease the information asymmetry of the credit market, facilitate the credit acquisition of firms, and alleviate the constraint on corporate financing, thereby reducing the probability of firm exit. This paper provides the theoretical basis and empirical evidence for controlling firm exit from the angle of digital finance development. |
| format | Article |
| id | doaj-art-712c1862d36d4c56845580a3a33ce2a7 |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-712c1862d36d4c56845580a3a33ce2a72025-02-03T01:25:10ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2021-01-01202110.1155/2021/48790294879029Digital Finance and Firm Exit: Mathematical Model and Empirical Evidence from Industrial FirmsFenfen Ma0Linxing Lei1Ziyang Chen2Mancang Wang3School of Economics and Management, Northwest University, Xi’an 710127, ChinaBusiness School, Xi’an University of Finance and Economics, Xi’an 710100, ChinaBusiness School, Xi’an University of Finance and Economics, Xi’an 710100, ChinaSchool of Economics and Management, Northwest University, Xi’an 710127, ChinaFrom the perspective of financial constraint, this paper constructs a mathematical model to analyze the impact of digital financial development on firm exit probability. The relationship between digital finance and firm exit was tested empirically based on the industrial firm data in 2011–2013. The results show that digital financial development significantly suppresses firm exit probability. Mechanism analysis suggests that digital financial development can ease the information asymmetry of the credit market, facilitate the credit acquisition of firms, and alleviate the constraint on corporate financing, thereby reducing the probability of firm exit. This paper provides the theoretical basis and empirical evidence for controlling firm exit from the angle of digital finance development.http://dx.doi.org/10.1155/2021/4879029 |
| spellingShingle | Fenfen Ma Linxing Lei Ziyang Chen Mancang Wang Digital Finance and Firm Exit: Mathematical Model and Empirical Evidence from Industrial Firms Discrete Dynamics in Nature and Society |
| title | Digital Finance and Firm Exit: Mathematical Model and Empirical Evidence from Industrial Firms |
| title_full | Digital Finance and Firm Exit: Mathematical Model and Empirical Evidence from Industrial Firms |
| title_fullStr | Digital Finance and Firm Exit: Mathematical Model and Empirical Evidence from Industrial Firms |
| title_full_unstemmed | Digital Finance and Firm Exit: Mathematical Model and Empirical Evidence from Industrial Firms |
| title_short | Digital Finance and Firm Exit: Mathematical Model and Empirical Evidence from Industrial Firms |
| title_sort | digital finance and firm exit mathematical model and empirical evidence from industrial firms |
| url | http://dx.doi.org/10.1155/2021/4879029 |
| work_keys_str_mv | AT fenfenma digitalfinanceandfirmexitmathematicalmodelandempiricalevidencefromindustrialfirms AT linxinglei digitalfinanceandfirmexitmathematicalmodelandempiricalevidencefromindustrialfirms AT ziyangchen digitalfinanceandfirmexitmathematicalmodelandempiricalevidencefromindustrialfirms AT mancangwang digitalfinanceandfirmexitmathematicalmodelandempiricalevidencefromindustrialfirms |