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Purpose: This study aims to empirically examine the impact of digital finance on spatial urbanization and elucidate its underlying mechanisms. Design/methodology/approach: Using panel data of Chinese prefecture-level cities from 2011 to 2021, and using a spatial dynamic panel model, the authors analyzed the effects of digital finance on spatial urbanization and the mechanism of its action. Findings: The findings of the study reveal that digital finance, along with its sub-dimensions, namely coverage breadth, usage depth and digitization degree, all contribute to the enhancement of spatial urbanization. The information channel effect generated by the development of postal and telecommunication businesses, the goods delivery effect generated by the development of retail businesses and the wealth accumulation effect generated by the accumulation of household wealth are all important channels through which digital finance promotes spatial urbanization. Digital finance exerts a significant promotional effect on spatial urbanization in second-tier cities, third-tier cities and their subsequent tiers. This observation alludes to the regionally inclusive nature of spatial urbanization promotion facilitated by digital finance. Originality/value: The present study endeavors to fill this void by employing empirical analysis to investigate the ramifications of digital finance on spatial urbanization, thereby shedding light on the pivotal role played by digital finance in expediting the progression of spatial urbanization. This study undertakes an examination of the spatial spillover effects, thus providing a comprehensive exposition of the influence of digital finance on spatial urbanization. This study introduces this crucial dimension, and the empirical findings elucidate that digital finance fosters the evolution of spatial urbanization by broadening the coverage of information channels, augmenting the efficiency of goods distribution and enhancing wealth accumulation efficacy. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to investigate how information and communication technology (ICT) services and digital finance affect the development of international tourism. Design/methodology/approach: The two-way fixed effect panel regression model, spatial econometric model, panel threshold regression model and panel quantile regression model are used. Data on tourism, economic and social development in 198 Chinese cities from 2011 to 2020 are analyzed. Findings: This study finds that digital economy including ICT services and digital finance has significantly promoted the development of international tourism industry, while there is a negative spatial spillover effect. The promotion effect of international tourism increases significantly after digital innovation reaches the threshold value. International tourism is benefiting more from digital economy with the development of international tourism industry. Research limitations/implications: The development quality of international tourism industry has not been analyzed due to data limitations, and the mechanism has not been tested. Originality/value: This study creatively reveals the development of international tourism industry in the digital economy era from ICT services and digital finance perspectives. This study also shows the spatial, nonlinear and asymmetric relationship between digital economy and international tourism. [ABSTRACT FROM AUTHOR]

Purpose: The paper's purpose is to investigate the effects of digital finance on the risk of stock price crashes and the underlying transmission mechanisms, and to provide suggestions to inhibit the stock crash risk (CR). Design/methodology/approach: This paper selects all companies that were listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange from 2011 to 2020. It then uses the two-way fixed effect model and the intermediary effect model to verify such effects. Findings: The overall outcomes demonstrate such a result that the CR of listed companies in China can be significantly reduced by the development of digital finance, and the overall transparency of business financial information and the equity pledge of controlling shareholders are the two underlying transmission mechanisms that digital finance can cause effects on the CR of stocks. Research limitations/implications: The main limitations are that there may exist some problems in the method for evaluating the CR of stocks. And there may be a problem of endogeneity caused by the empirical model cannot control all correlation variables. Practical implications: This paper would provide policy implications, for different roles, to inhibit the stock CR and to make the development of the economy more stabilize. Social implications: Digital finance can promote economic development while restraining financial risks at the same time. Therefore, although this study is based on the relevant data from China, it can also provide a reference for other economies with different basic conditions from China, to promote the overall development of the world economy. Originality/value: The current academic research on digital finance or stock price CR has been relatively sufficient, but there are few papers that combined both. By combining digital finance with stock CR, this paper researches the influence of digital finance on the CR of stocks through empirical analysis. So, this paper would provide new research ideas and evidence for potential influence factors of the CR of stocks, fill the gap in this research field and provide certain help for subsequent scholars to conduct relevant research. [ABSTRACT FROM AUTHOR]

Purpose: This study intends to explore the relationship between digital finance and the vertical specialization of firms. The following questions are discussed: (1) As a representative new financial development model, what is the role of digital finance in the vertical specialization of firms? (2) If digital finance improves the level of vertical specialization of firms, what is the mechanism behind such improvement? (3) How does digital finance impact the vertical specialization of firms in different regions, industries, and firms? Design/methodology/approach: A two-way fixed-effect model of panel data is proposed to verify the relationship between digital finance and the vertical specialization of firms. This model is constructed by matching the city-level data of digital finance with the data of China's A-share listed companies from 2011 to 2018. Meanwhile, the instrumental variable (IV) method and difference-in-difference (DID) method are adopted to deal with the endogeneity problem of the model. Findings: The authors' study finds that digital finance has significantly improved the level of vertical specialization of firms. The result is robust under the endogeneity consideration and a series of robustness tests. After the dimensionality of the index is reduced, the depth of digital finance usage is more conducive to the improvement of the vertical specialization of firms compared with the width of digital finance coverage and the level of financial digitization. Digital finance mainly improves the level of vertical specialization of firms by reducing transaction costs and increasing the market thickness of the intermediate products. Moreover, digital finance has certain heterogeneity in promoting the vertical specialization of firms, an effect that is more significant in the eastern region, manufacturing industry and state-owned enterprises (SOEs). Research limitations/implications: The first limitation is the mechanism test. This research only analyzes the mechanism from transaction cost and the market thickness of the intermediate products. With the rapid development of information technology, digital finance will be further integrated into people's production and life. There will then be more mechanisms that should be explored between digital finance and the vertical specialization of firms. Another limitation is the data sample of this paper. The conclusions of this research are based only on the data of listed companies. However, in the authors' opinion, the specialization level of small and medium-sized enterprise (SMEs) should be higher. Therefore, the conclusions of this work are underestimated, which can be considered as the lower limit of digital finance for enterprise specialization. Social implications: As a favorable financing channel to supplement traditional financial service functions, digital finance plays a critical role in the operating efficiency of enterprises and the effective allocation of macro resources. The authors' research shows that digital finance has significantly improved the vertical specialization of firms. This conclusion provides guides to improve the production efficiency of enterprises and the quality of economic development. Originality/value: This paper has three main contributions. (1) The relationship between financial development and the vertical specialization of firms is innovatively discussed from the perspective of digital finance, which implies that digital finance can effectively promote the level of vertical specialization of firms. (2) This paper provides new perspectives and ideas to reveal the impact mechanism of digital finance on the real economy by systematically analyzing the mechanism of digital finance on the vertical specialization of firms from the perspectives of transaction costs and financing constraints. (3) The regional differences in the development of digital finance, industry differences in the vertical specialization of firms and differences in the nature of enterprise property rights are all under consideration, which improves the effectiveness and pertinence of digital finance in promoting the vertical specialization of firms. [ABSTRACT FROM AUTHOR]