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The article explores the history of the development of the legal status of virtual asset service providers (VASPs) in the European Union until the publication of the first draft of the EU Markets in Crypto-Assets Regulation (MiCAR) by the European Commission in September 2020. It examines the early stage of virtual asset regulation in the EU based on the chosen periodization. Special attention is given to the initial research on issues related to virtual assets and European legislative initiatives. Particular focus is placed on the analysis of documents issued by the European Banking Authority, which addressed consumer warnings about the risks associated with virtual currencies, as well as the authority's efforts to mitigate systemic risks in the European financial system and the evaluation of those risks in connection with the development of the virtual currenc y market at that time. The article also examines documents from the European Central Bank concerning participants of the so-called "virtual currency schemes". These schemes include entities such as inventors, issuers, miners, processing service providers, users, wallet providers, exchange s, trading platforms, and other actors. The progression from fragmented research by individual European regulatory bodies to the first pan-European legislative initiative, which aimed to include specific service providers related to the circulation of virtual currencies, particularly custodial wallet providers and services for exchanging virtual currencies into fiat money and vice versa, among the obliged entities for the purposes of prevention of money laundering and terrorist financing. Within this context, the provisions of EU Directives 2015/849 (4AMLD) and 2018/843 (5AMLD) are analyzed, which represent a significant legislative step aimed at strengthening the EU's framework for combating money laundering and terrorist financi ng. The reports of the European Securities and Markets Authority (ESMA) and the European Banking Authority, which preceded the publication of the first draft of the MiCA Regulation, are also considered. [ABSTRACT FROM AUTHOR]

• Focuses on the role of digital finance in the TFP of manufacturing enterprises. • Tests the mediating role of financing constraints, human capital, and risk-taking. • Analyzes digital finance's dynamic impact on firm productivity through entry/exit. The development of digital finance offers numerous development opportunities, particularly in the accessing of funds for enterprises that traditionally face financial constraints. The economic downturn globally and especially in China requires new policies for stimulating economic growth. The manufacturing industry in particular is apt for this kind of intervention. Although studies have examined these topics, several gaps exist in the literature, specifically in the area of the effect mechanism. Therefore, this study examines the direct relationship between digital finance and the total factor productivity (TFP) of manufacturing enterprises and discusses the mechanism of action between the two from the intermediary and entry/exit perspectives. The findings show that digital finance affects manufacturing TFP positively and significantly. The promotion effect of digital finance is more evident from the enterprise heterogeneity analysis, particularly for small- and medium-sized private and manufacturing enterprises with better growth. The effect mechanism analysis shows that digital finance affects manufacturing TFP positively by reducing financing constraints, improving the level of human capital, and enhancing enterprise risk-taking ability. From the perspective of enterprise entry and exit, the entry of high-productivity enterprises enhances market competition and is an important way that digital finance promotes the improvement of industry TFP. [ABSTRACT FROM AUTHOR]

Based on the perspective of digital empowerment, this study aims to examine the impact and mechanism of digital finance on corporate environmental strategy upgrade. We use listed companies in Chinese heavily polluting industries from 2014 to 2020 as study samples and construct a fixed effect model for empirical testing. The findings reveal that the upgrading of corporate environmental strategy is positively incentivized by digital finance, and the influence channel of this incentive is to alleviate financing constraints. Meanwhile, lower managerial myopia and higher media attention can strengthen digital finance's contribution to the corporate environmental strategy upgrade. Furthermore, heterogeneity analysis indicates that the empowering role of digital finance in the corporate environmental strategy upgrade is more pronounced in non-state-owned enterprises, central and western regions, as well as areas with high environmental governance intensity. The research conclusions provide a practical basis for vigorously developing digital finance and accelerating the environmental strategy upgrade of heavily polluting enterprises. [ABSTRACT FROM AUTHOR]

Due to high rejection rates and the costly and time-consuming application procedures, small and medium-sized firms may be discouraged from applying for a bank loan, thus resulting in the so-called self-rationing behaviour. Using the World Bank Enterprise Survey Data collected from 2,700 privately owned firms in China during 2011–2013, we document that there exist a significant number of small and medium-sized enterprises (SMEs) which have good performance and financing needs, but are discouraged from applying for a bank loan. We theoretically and empirically show that digital finance development can alleviate the self-rationing behaviour of SMEs. The mechanism analysis shows that, from the supply side, digital finance development enhances the probability of loan approval and the proportion of private firms' working capital financed by banks, and reduces the obstacle to access bank loans; while from the demand side, the development of digital finance improves financial inclusion and the financial literacy of firms. Our findings suggest that digital finance development improves loan efficiency and helps SMEs better access bank credits. [ABSTRACT FROM AUTHOR]

As one of the economic centers of China, improving the economic resilience of the Yangtze river economic belt (YREB) is vital to China's steady economic advancement. This study analyzes the provinces and cities' digital financial and economic resilient status in the YREB for 2011–2021. A coupled coordination degree model is used to verify the interaction and strength between digital finance and economic resilience advancement in the YREB from both temporal and spatial perspectives. Utilizing canonical correlation analysis, the influencing factors and degree of the interaction between digital finance and economic resilience are investigated. The findings indicate that the level of digital finance and economic resilience coupled coordinated in the YREB is generally on the rise, from basic coordination to moderate coordination, and that there are spatial differences in coupled coordination, with the backward part of the YREB having the highest levels, followed by the middle and upward part. The first canonical correlation coefficient (0.948) obtained by canonical correlation analysis is significantly higher than the other coefficients, and digital finance and economic resilience are significantly correlated. Moreover, the digital financial coverage breadth and use depth, economic level, social consumption level and industrial upgrading level are the key factors affecting the coordinated development and economic resilience in the YREB. Therefore, this study proposes the following policy recommendations based on the results: actively facilitate digital financial growth, optimize the industrial structure, enhance countries' economic resilience, and boost the construction of countries' coordinated growth to foster the synergy of the YREB. [ABSTRACT FROM AUTHOR]

The recent integration of digital technology and financial services has given rise to the newly emerging modality of digital finance. However, does digital finance improve the efficiency of financial services while influencing the investment behavior of brick-and-mortar businesses? With the help of the data about Chinese listed companies, this paper uses multiple regression analysis, instrumental variables, and other methods to empirically test whether and how digital finance affects the financial asset allocation decisions of brick-and-mortar enterprises. The findings suggest that digital finance has a galvanizing effect on financial asset allocation. However, this effect mainly stems from the fact that firms allocate more illiquid financial assets and has a dampening effect on liquid financial assets. Path analysis shows that easing financing constraints is a causal pathway through which digital finance dampens firms' liquid financial asset allocation. Moreover, rising risk exposure levels partially mediate the stimulus of digital finance, motivating firms to allocate illiquid financial assets. This paper contributes to the research on the economic consequences of digital finance and provides policy recommendations on how digital finance can better serve the real economy. [ABSTRACT FROM AUTHOR]

With ongoing advancements in financial technology, digital finance has experienced rapid development in China, leveraging big data, cloud computing, and social platforms. Service consumption plays a crucial role as an indicator of households' ability to achieve consumption upgrades and overall happiness. Internet financing and payment represent two primary types of digital finance. This article aims to assess their impacts on household service consumption. Both types of digital finance have a significant potential to increase household service consumption, which is categorized into seven distinct categories in this article. Digital finance demonstrates a notable ability to enhance consumption in various categories, including daily services, transportation and communication, healthcare, education, entertainment, and tourism. However, it has no significant impact on medical consumption. Finally, the empirical results reveal that digital finance exhibits heterogeneous effects on the service consumption of households with different characteristics. [ABSTRACT FROM AUTHOR]

Digital finance provides new possible ways to promote innovation-driven development strategies. Using data of 257 prefecture-level cities in China from 2011 to 2019, this paper examines the impact of digital finance on regional innovation, as well as the mediating effect of resource mismatch underlies it. The empirical results are as follows. First, digital finance can significantly boost innovation, both in terms of the quantity and quality. Second, the incentive effects of innovation have been more obviously observed in the eastern cities and the cities with high financial levels or light digital divides in China. Third, the mechanism effect implies that digital finance works positively on innovation through improving the factor allocation efficiency by alleviating the misallocation of labour and capital. These conclusions indicate that to better promote regional innovation, it is crucial to encourage the digital transformation of the financial industry, enhance digital infrastructure development, and facilitate the free flow of resources among regions. The paper offers both theoretical and empirical evidence that digital finance influences regional innovation by alleviating resource mismatches. It also examines the role of the ‘digital divide’ in shaping innovation through digital finance. These two points constitute the key innovations of the paper. [ABSTRACT FROM AUTHOR]

Green innovation is inevitable for improving the environment and achieving sustainable economic development. Using panel data of 3,076 enterprises listed on the Shenzhen and Shanghai stock from 2012 to 2021, the research employs the zero-inflated negative binomial (ZINB) regression to examine the impacts of government subsidies on corporate green innovation and the moderating effect of digital finance. Moreover, this paper investigates the impacts of ownership structure and industry heterogeneity. We find reliable evidence indicating a positive U-shape correlation between government subsidies and corporate green innovation. Moreover, the overall U-shape curve is elevated under the moderation of digital finance. Further analysis indicates that government subsidies significantly enhance the green innovation of non-state-owned and industrial enterprises. The findings herein provide new guidance for the government to stimulate corporate green innovation, balancing environmental quality and high-quality economic development. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Chengdu University (Social Science) is the property of Journal of Chengdu University (Social Science Edition) Editorial Office and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

With the rapid progression of urbanization, Chinese cities are encountering an increasingly severe shortage of land resources. To examine the role of digital finance (DF) in promoting economic agglomeration (EA) and subsequently improving urban land use efficiency (ULUE), this paper focuses on 274 prefecture-level cities from 2013 to 2020. By employing an interaction effect model, the study analyzes how DF influences the relationship between EA and the enhancement of ULUE. The findings demonstrate that DF positively moderates the effect of EA on enhancing ULUE. The analysis reveals that DF can accelerate resource flows and more effectively promote the enhancement of ULUE by amplifying the positive influence of EA on regional innovation ability (IA) and the rationalization of industrial structures (RIS). Furthermore, the heterogeneity analysis indicates that this moderating effect is particularly pronounced in China's central and eastern regions, areas with higher rates of internet penetration, and regions with stronger innovation capacities. Based on these findings, this paper proposes policy recommendations such as promoting regional integration and supporting innovation in DF. These insights contribute to the theoretical discourse on EA in the digital era and provide critical and practical guidance for optimizing the development of agglomeration economies and constructing a high-quality development framework. [ABSTRACT FROM AUTHOR]

The development of renewable energy is a strategic deployment to address climate change and ensure energy security. Frontier research generally focuses on the impact of renewable energy development and technological innovation on environmental protection and neglects the inequality in renewable energy technology innovation. This paper constructs a renewable energy technology innovation inequality index and analyzes the impact of digital finance on renewable energy technology innovation inequality using panel data from 30 regions in China from 2011 to 2018. The study found that digital finance can alleviate inequality in renewable energy technology innovation. The mechanism test results show that digital finance can optimize green credit allocation, promote technology flow, and optimize energy consumption structure, thus reducing inequality in renewable energy technology innovation. Further analysis shows that the differences in local government governance, environmental regulation, financial supervision, marketization, digital divide, and renewable energy category affect the relationship between digital finance and inequality in renewable energy technology innovation. This paper clarifies the relationship between digital finance and inequality in renewable energy technology innovation and provides new ideas for renewable energy technology innovation. [ABSTRACT FROM AUTHOR]

Existing research on finance mainly focuses on credit, and there are few studies on the pollution reduction effects of digital finance. Based on a sample of 278 cities from 2011 to 2019, this article empirically examines the impact of digital finance on greener emissions. We find that digital finance, particularly in its usage depth, reduces industrial waste gas emissions, and exhibits a significant green emission effect. After using robustness tests such as Bartik instrument as an instrumental variable for digital finance, our conclusions still hold. Mechanism analysis finds that supporting green credit projects and promoting public energy conservation are the critical path for digital finance to enhance greener emissions. Furthermore, we compare the roles of traditional finance and digital finance in greener emissions, and find that digital finance reduces industrial waste gas emissions, while traditional finance is not conducive to emission reduction. [ABSTRACT FROM AUTHOR]

This study investigates the impact of digital finance on the sustainability and expansion of small and micro-sized enterprises (SMEs) in China. The findings reveal that regional digital finance significantly improves SMEs' prospects for survival and growth, particularly in terms of business income. Digital finance primarily facilitates SMEs growth by alleviating credit constraints, expanding online operations, and enhancing access to information and knowledge. This benefit is most pronounced for entrepreneurs with limited capital, and early-stage enterprises. However, this transformation necessitates higher prerequisites for regional traditional financial foundation and digital competencies. This paper contributes to a deeper understanding of how digital finance plays a crucial role in enhancing SMEs prospects in emerging markets. [ABSTRACT FROM AUTHOR]

This insightful study delves into the intricate relationship between key digital finance adoption indicators and the stability of the banking sector in Ethiopia, an emerging economy undergoing rapid digitalization. Covering annual data from 1991 to 2022 and utilizing an autoregressive distributed lag (ARDL) approach alongside Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) techniques, the researchers uncover thought-provoking findings that challenge conventional wisdom. Contrary to expectations of a positive long-term association, the analysis reveals a statistically significant negative relationship between both internet usage and mobile phone subscriptions and Ethiopia's banking system's financial stability. This robust result, validated through rigorous robustness checks, suggests that the breakneck pace of digital transformation may outpace the development of robust regulatory frameworks and risk management practices, ultimately undermining the overall stability of the financial sector. Interestingly, the short-term analysis presents a more nuanced picture, with mobile phone subscriptions exhibiting a stabilizing effect in the immediate aftermath. This intriguing dichotomy highlights the complex and evolving dynamics at play, where the challenges of integrating digital finance with the traditional banking infrastructure and the persistence of informal financial activities potentially offset the benefits of enhanced financial inclusion and transaction efficiency. These thought-provoking findings carry crucial implications for policymakers and industry stakeholders navigating the digital revolution. Policy implications emphasize the need for robust regulatory frameworks, enhanced cyber security measures, and improved financial literacy. The findings underscore the importance of a nuanced approach to digital finance in emerging economies, advocating for continuous adaptation of policies to address the evolving landscape of financial technology. Continued inquiry can better guide policies that foster digital transformation while safeguarding stability, especially in rapidly developing regions like sub-Saharan Africa. Article Highlights: Digital finance growth may harm bank stability in Ethiopia. Short-term benefits from mobile money exist, but long-term risks outweigh them. Strong regulations and financial education needed to balance digital growth and stability. [ABSTRACT FROM AUTHOR]

Exploring the impact of digital finance on environmental pollution is of great significance for realising regional sustainable development and promoting digital finance strategies. This paper uses the balanced panel data of 274 prefecture-level cities in China collected between 2011 and 2018, empirically studies the impact of digital finance on environmental pollution, and analyses its direct, mediating, nonlinear and heterogeneity effects. The results show that digital finance reduces environmental pollution and the effect gradually increases with time. The sub-indicators of digital finance significantly reduce environmental pollution, among which the usage-depth has the greatest impact on environmental pollution, while digitalisation level has the least. Digital finance reduces environmental pollution through production technology and industrial structure, while pollution control technology does not play an intermediary role. The pollution control effect of digital finance is more prominent in cities with a high level of Internet development and human capital. Furthermore, the inhibitory effect is more significant in western region and medium-small sized cities. [ABSTRACT FROM AUTHOR]

This study offers detailed recommendations on strengthening government support without harming digital finance benefits, especially in negatively affected areas, which is critical for enhancing the inclusiveness of the digital financial landscape and reducing social disparities. This paper uses year 2011–2022 panel data from China's 31 provinces to empirically analyze digital finance's effects, mechanisms, and heterogeneity on agricultural economy resilience with a two-way, fixed-effect model. It further explores each feature's impacts using machine learning methodologies like the random forest, GBRT, SHAP value method, and ALE plot. The findings show that digital finance boosted agri-economy resilience, varying by food-producing status and marketization. Among all the features analyzed, government input, urbanization level, and planting structure emerged as the most critical factors influencing agri-economy resilience. Notably, government input negatively moderated this relationship. The ALE plot revealed non-linear effects of digital finance and planting structure on agri-economy resilience. [ABSTRACT FROM AUTHOR]

The development of digital finance provides new opportunities for solving the dilemma of innovation financing for small- and medium-sized enterprises (SMEs). This study empirically examined the heterogeneous characteristics and mediating mechanisms of digital finance and its incentive effects on SME innovation using panel data of Chinese and GEM board-listed companies from 2010 to 2021. It was found that digital finance can significantly incentivize SME innovation; however, there are differences in efficacy among digital finance sub-dimensions, with breadth of coverage having the strongest effect, followed by depth of use, and digitization degree having a non-significant effect. Meanwhile, there is heterogeneity in the incentive effect of digital finance on SME innovation, which is manifested as private SMEs and SMEs in regions with stronger financial regulations and a higher degree of marketization being more likely to be incentivized by digital finance to innovate. In addition, digital finance can indirectly incentivize SMEs to innovate through three paths: alleviating financing constraints, improving risk tolerance, and solving information asymmetry. [ABSTRACT FROM AUTHOR]

The effect of digital finance on the income disparity between urban and rural areas has attracted wide attention from scholars, and this paper focuses on the mediating role of employment structural transformation, which can contribute more insights to address regional development imbalances and achieve common prosperity. Taking panel data of China's province from 2010 to 2020 as a sample, we use the fixed effect model to integrally test the relationship between the three factors. Our findings indicate that (1) the development of digital finance significantly narrows the urban–rural income gap. The digital finance index increased by 1% and the rural–urban income gap decreased by about 0.34%. The results still hold after considering the endogeneity problem and a series of robustness tests; (2) mechanism analysis shows that digital finance could reduce the urban–rural income gap through the employment structural transformation; and (3) the results of regional heterogeneity show that the reduction effect of digital finance on the urban–rural income gap is stronger in areas with high marketization and in northern regions. Such insights can assist the government in strategically developing rural digital finance, thereby expediting the reduction of regional inequalities and achieving sustainable economic growth. Additionally, the government should focus on guiding rural employment structure transformation to better realize the reduction effect of digital finance on the urban–rural income gap. [ABSTRACT FROM AUTHOR]

The fact that financial exclusion leads to income inequality is detrimental to sustainable economic growth. Digital finance facilitates the provision of financial services to poor people and has the potential to promote income mobility so that to reduce income inequality. This study uses the Digital Financial Inclusion Index and household data from the China Household Finance Survey to examine the association between digital finance and households' income mobility. Results show a significantly positive association between digital finance and upward income mobility. Underlying mechanism analyses suggest that digital finance is positively associated with upward mobility through the channels of equal opportunity and financial capability. Further heterogeneous analyses find that asset, education, and age can be moderators in the relationship between digital finance and income mobility. The findings demonstrate the importance of digital finance in promoting the income mobility of disadvantaged people and achieving the goal of inclusive and sustainable development. [ABSTRACT FROM AUTHOR]

Based on the data of China A-share listed enterprises, this paper examines the actual effect and mechanism of the development of digital finance on different innovation behaviors of enterprises, by using the panel data model and regression-based mediation analysis. It is found that the development of digital finance not only promotes the R&D investment of enterprises but also improves the quantity and quality of enterprise innovation output. The incentive effect of digital finance on enterprise R&D investment is stronger than that on innovation output, while the incentive effect of digital finance on enterprise breakthrough innovation is stronger than that of incremental innovation. Both the 'broadening' and the 'deepening' of digital finance have a significant positive effect on enterprise innovation, while the 'digitalization degree' of digital finance has no significant effect on enterprise innovation, and even may hinder the improvement of innovation quality. The incentive effect of digital finance on the innovation output of state-owned enterprises is reflected in 'quantity', while the incentive effect on innovation of non-state-owned enterprises is reflected in 'quality'. Digital finance can stimulate enterprise innovation by easing the financing constraints of enterprises, optimizing the government subsidy system, and improving the business environment. [ABSTRACT FROM AUTHOR]

This paper explores the impact of digital finance (DFI) and environmental performance (EP) on corporate financing efficiency (FE) in China's property sector. The research addresses two main questions: How do digital finance and environmental performance influence corporate financing efficiency? What are the policy implications of these influences for enhancing green transformation in the sector? Employing robust techniques, including fixed-effect regression and a difference-in-differences (DID) approach. The study reveals that DFI and EP have a significant positive effect on FE. The analysis demonstrates that higher levels of DFI and improved EP lead to more effective allocation and utilization of financial resources. The DID results further indicate that an increase in DFI contributes to a significant enhancement in FE with a one-year lag, without violating the parallel trends assumption. The study shows that integrating digital finance and environmental sustainability improves financial efficiency. It urges policymakers to promote investments in digital financial technologies. [ABSTRACT FROM AUTHOR]

The global spread of the COVID-19 epidemic has caused increasingly grievous issues such as poverty, inequality and economic recession, which has hindered the realization of inclusive growth (IG) and disrupted the sustainable development trajectory. Meanwhile, with the vigorous development of digital finance (DF) based on advanced digital technologies such as big data, the Internet of things and artificial intelligence, new vitality has been injected into China's growth model. Thus, whether DF could affect IG and to what extent has drawn attention from scholars to policymakers. This study examines whether DF significantly contributes to IG using the XGBoost machine learning (ML) algorithm for the first time. Using a panel of 281 prefecture-level cities from 2005 to 2020, we employ the Entropy-VIKOR model to assess cities' inclusive growth index and reveal the spatial–temporal evolution and regional differences characteristics. We find that DF plays an indispensable role in promoting urban IG and influences the three sub-dimensions of IG: economic growth, opportunity equity and achievement sharing. The heterogeneous analyses based on geographic location and population size show that digital finance plays a more significant role in promoting inclusive growth of cities in central and western China than cities in eastern China; however, cities with different population sizes have little difference. Our findings using ML algorithms are robust to using traditional econometric models. This study sheds light on how DF could help achieve the IG in developing countries similar to China. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Hubei Open Vocational College is the property of Journal of Hubei Open Vocational College Editorial Office and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Digital inclusive agriculture refers to an agricultural development model that integrates various digital technologies into the agricultural production process, aiming to deliver benefits for all stakeholders throughout the agricultural value chain. This paper draws on the ecological symbiosis theory, embeds the concepts of digital finance and social responsibility into the goal of green development in agriculture, selects 395 agribusiness enterprises in China from 2013 to 2022 as the analysis sample, and examines the impact by adopting an improved weighted least squares (WLS) fixed effects model. Results show that digital finance has a significant effect on the quantity and quality of green innovation in agribusiness enterprises, and good social responsibility performance can enhance the innovation promotion effect of digital finance. Heterogeneity analysis reveals that agribusiness belonging to the processing and distribution type, located in the eastern region, and in the growth stage benefit more clearly. This paper provides theoretical references and practical guidelines for solving agricultural financing problems, boosting their green innovation capacity in the digital age. It is of great practical significance for realizing the green symbiotic ecology of responsible agricultural industry, promoting the win–win situation between enterprises and society, and the high-quality development of agriculture. [ABSTRACT FROM AUTHOR]

This article examines the impacts of traditional and digital finance on the financing of small and micro family businesses (SMFBs) in China. Based on a comprehensive sample of 8625 SMFBs from China Household Financial Survey (CHFS) data, our results from Tobit regressions showed that traditional finance did not reduce the financing constraints of SMFBs, while digital finance significantly promoted SMFBs' access to credit. Further analyses revealed that additional credit from digital finance helped SMFBs increase their business scale and operational capability, but decreased their profitability due to the high loan cost associated with digital finance. Our findings imply on the one hand that government policies aiming at encouraging commercial banks to provide loans to small and micro enterprises in China have been producing very limited effects. On the other hand, digital finance is an effective micro-loan provider for SMFBs thanks to its strong ability in collecting and integrating individuals' credit history data, although more measures are needed to take for turning this financing enhancement of SMFBs into their profit growth. These findings enrich the literature on family business by comparing the effectiveness of different financing sources for SMFBs in China. It provides important insights for future policy design on how to ease financial constraints in SMFBs and support the development of SMFBs. Plain English Summary: This study investigated the effects of traditional finance and digital finance on the financing of SMFBs in China. Tobit regression results indicated that traditional finance did not alleviate the financing constraints experienced by SMFBs. Despite the use of advanced financial technologies and the encouragement from government policies, commercial banks are still unwilling to extend credit to SMFBs. Digital credit, by contrast, enhanced the financial accessibility for SMFBs. Moreover, increased financing from digital finance was positively associated with SMFBs' business expansion and operational ability, although it did not enhance the profitability of SMFBs in a short run. To effectively promote the financing and business success for SMFBs, efforts from multiple agents need to be taken. The owners of SMFBS should involve more in-depth in business operation and take greater responsibility for enterprise management. Policymakers should consider commercial banks' objectives and interests, when encouraging them to lend to small and micro businesses, and monitor the true interest rate of digital financial services. [ABSTRACT FROM AUTHOR]

Abstract This insightful study delves into the intricate relationship between key digital finance adoption indicators and the stability of the banking sector in Ethiopia, an emerging economy undergoing rapid digitalization. Covering annual data from 1991 to 2022 and utilizing an autoregressive distributed lag (ARDL) approach alongside Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) techniques, the researchers uncover thought-provoking findings that challenge conventional wisdom. Contrary to expectations of a positive long-term association, the analysis reveals a statistically significant negative relationship between both internet usage and mobile phone subscriptions and Ethiopia's banking system's financial stability. This robust result, validated through rigorous robustness checks, suggests that the breakneck pace of digital transformation may outpace the development of robust regulatory frameworks and risk management practices, ultimately undermining the overall stability of the financial sector. Interestingly, the short-term analysis presents a more nuanced picture, with mobile phone subscriptions exhibiting a stabilizing effect in the immediate aftermath. This intriguing dichotomy highlights the complex and evolving dynamics at play, where the challenges of integrating digital finance with the traditional banking infrastructure and the persistence of informal financial activities potentially offset the benefits of enhanced financial inclusion and transaction efficiency. These thought-provoking findings carry crucial implications for policymakers and industry stakeholders navigating the digital revolution. Policy implications emphasize the need for robust regulatory frameworks, enhanced cyber security measures, and improved financial literacy. The findings underscore the importance of a nuanced approach to digital finance in emerging economies, advocating for continuous adaptation of policies to address the evolving landscape of financial technology. Continued inquiry can better guide policies that foster digital transformation while safeguarding stability, especially in rapidly developing regions like sub-Saharan Africa. Graphical Abstract

Digital finance has become one of the most important factors that drives the transformation toward a low-carbon economy. Although some researchers have examined the association between digital finance and low-carbon development, the indirect effect and asymmetric effect of digital finance on low-carbon development still needs to receive more attention. Taking 71 cities in the Yellow River Basin as an empirical area, this study analyzed how digital finance accelerates low-carbon development, proving that digital finance can directly boost low-carbon development. Moreover, technological innovation and industrial upgrading driven by digital finance can also reduce carbon emission intensity and accelerate low-carbon development. Furthermore, the results of the asymmetric test indicate that cities with higher carbon emission intensity have a more substantial positive influence. The recommendations presented in this study are beneficial for accelerating the progress of low-carbon development in the Yellow River Basin. [ABSTRACT FROM AUTHOR]

This paper examines the influence of digital finance (DF) on the green level of transportation companies (GLTC, n = 112) listed on the Chinese A-share market from 2011 to 2021 through moderation and mediation models. According to the conclusions, first, a significantly positive correlation exists between DF and GLTC. Second, DF indirectly promotes GLTC by enhancing corporate value and alleviating financing constraints. Both enterprise value and financing constraints have a chain mediation effect. Third, the government's digital preference can enhance the role of DF in promoting GLTC and alleviating financing constraints. In addition, governmental digital preference can moderate the impact of financing constraints on GLTC. Fourth, the effect of DF on GLTC exhibits regional, scale, and ownership heterogeneities. Drawing on the conclusions of the empirical analysis, several pertinent recommendations are proposed from micro and macro perspectives.

The relevance of the study is confirmed by the fact that it is financial relations in ecosystems that have become the subject of research that are influenced by certain rules (including state regulation) that limit the degrees of freedom of ecosystem participants and its organizers and ultimately determine the viability of the ecosystem approach, which determined the purpose of the study as establishing the potential of the financial instruments of the state in ensuring the necessary level of rationing for regulation in business ecosystems. It is shown that the distinctive feature between the corporate and ecosystem approach is the use of rationing as additional restrictions to financial decisions based on public and private sources of financial resources available in business ecosystems. Research methods, on the one hand, are based on a key methodology — the emerging ecosystem’s theory in the part where it replaces the firm’s theory, taking into account the provisions of the credit rationing theory as an application to corporate finance, on the other hand, the conceptual provisions of the theory of constraints in relation to finance are taken into account. The results of the study show that the allocation of public and private ecosystem rationing makes it possible to form the basis for strategic financial decisions. It is established that when creating an industrial business ecosystem, small and medium-sized businesses will become its main participants, which is justified by the need for external financing that the business ecosystem can provide. It is concluded that when implementing the idea of rationing, the search for the optimal strategy for participants can be simplified to considering only pair interaction (instead of optimizing the entire set of relationships). The presented paired partitions make it possible to clarify the constraints and individualize them. Comparative analysis has shown that, from the point of view of effective implementation of restrictions, the consortium with state participation has the greatest potential, and clusters have the least potential, from the point of view of capital rationing. As a result, the conclusion is made about the prospects for the development of business ecosystems with state financing (control), which would imply a purposeful solution to the tasks of the state in the modern economy.

Abstract It is of critical importance to address energy poverty in rural areas if inclusive prosperity is to be achieved. Digital finance offers new opportunities to alleviate energy poverty in these regions. However, previous studies have mainly focused on the impact of digital finance on poverty, neglecting research on its impact in rural areas and on specific forms of poverty. This study aims to fill this gap by investigating the impact of digital finance on rural energy poverty. The period 2011–2021 was selected as the observation period, with 31 provinces serving as the study objects. The fixed effects model was employed to investigate the impact of digital finance on rural energy poverty, while exploring the mediating effect. The results indicate that digital finance alleviates the level of rural energy poverty, and this conclusion remains valid following a series of robustness tests. Furthermore, digital finance can indirectly alleviate rural energy poverty through technological innovation and agricultural entrepreneurship activities. Further research indicates that the impact of digital finance on rural energy poverty is more pronounced in regions with abundant human capital, robust government intervention, and minimal urban–rural disparities. This study extends the theoretical support for digital finance to indirectly support rural energy to alleviate poverty. Likewise, this finding provides a new perspective for the government and relevant departments to improve the welfare of residents and alleviate rural energy poverty.

Abstract As global warming's impact on humanity surpasses initial predictions, numerous countries confront heightened risks associated with escalating urban carbon footprints. Concurrently, digital finance has flourished, propelled by advancements in digital technology. This convergence underscores the urgency of exploring digital finance's role in mitigating urban carbon footprint pressures. This study analyzes data spanning 277 Chinese cities from 2011 to 2020, yielding several key findings: Firstly, we developed a dataset detailing the carbon footprint pressures in these cities, revealing that variations in these pressures predominantly correlate with economic growth. Secondly, our analysis indicates that digital finance has a significant impact on reducing urban carbon footprint pressures, through mechanisms such as reducing the number of physical bank branches and enhancing residents' environmental awareness. Thirdly, the study identifies that the efficacy of digital finance in reducing carbon footprint pressures varies according to factors like sunshine duration and geographic location. The insights from this research aim to contribute substantively to strategies for sustainable urban development.

Abstract The study examines the digital finance (DF) and regional sustainable development (RSD) across 90 cities within six major city clusters in China over the period from 2011 to 2020. By constructing an evaluation index system for DF and RSD, we employed the entropy value method to assess their levels, and the coupling coordination degree (CCD) model to evaluate their interplay. Our analysis extended to temporal and spatial disparities, distribution dynamics, and the convergence of CCD through kernel density estimation, Markov chain analysis, $$\sigma$$ σ -convergence, and $$\beta$$ β -convergence techniques. The results indicate a consistent upward trend in CCD, yet it remains at a low level with pronounced regional disparities and temporal characteristics. The kernel density distribution’s central tendency has shifted rightward progressively, albeit with a decelerating pace annually. The Markov transition probability matrix suggests a stable CCD across various levels, hinting at “club convergence”. Furthermore, both $$\sigma$$ σ -convergence and $$\beta$$ β -convergence analyses reveal significant convergence trends in CCD, enhanced by economic growth factors. Using the Quadratic Assignment Procedure (QAP) method, we found that regional economic growth disparities significantly influence the CCD’s regional variances.

Sustainable growth relies on common prosperity, which is reflected in increasing total income and equitable income distribution. This study first proposes the theoretical mechanisms by which digital financial development affects residents' total income and income distribution. After that, a two-stage generalized method of moments estimation model with endogeneity treatment is constructed to investigate the impact of digital finance on residents' total income in 31 Chinese provinces. Moreover, Moran's I and a spatial autoregression model are used to explore the impact of digital finance on residents' income distribution. The results demonstrate that digital financial development can significantly contribute to the increase in residents' total income in both urban and rural areas, thus contributing to regional sustainable wealth growth. In addition, digital finance has a spatial direct effect and a spatial spillover effect on the optimization of residents' income distribution. This indicates that a region's digital financial development benefits regional sustainable wealth growth, as it not only can improve residents' income distribution within the same region but also can promote the income distribution of neighboring regions. [ABSTRACT FROM AUTHOR]

Given that digital finance is critical for achieving sustainability, this study seeks to probe the mechanisms for using digital finance to solve the triple-bottom-line dilemma of sustainability. This paper examines the inner influence mechanisms of digital finance on ESG (environmental, social, and governance) and financial performance. The results show digital finance is conducive to ESG performance while indirectly enhancing firms' short- and long-term financial performance via ESG. Further, digital finance usage depth is the primary enabler for ESG and short-term financial performance. The mechanism analysis reveals that the positive relationship between digital finance and ESG will be enhanced by upgrading green innovation and boosting digital transformation. Moreover, heterogeneous analysis states that digital finance usage depth has a more pronounced positive role on ESG and financial performance in large firms and SOEs (state-owned enterprises) while coverage breadth positively affects ESG and is more pronounced in small firms and non-SOEs. This paper expands knowledge about digital finance via sustainability practice pathways. [ABSTRACT FROM AUTHOR]

AbstractEffective savings mechanisms are crucial for household resilience and economic growth. Savings accounts, whether from banks or mobile-phone based, offer an alternative to informal saving mechanisms as they provide safe and private cash storage. However, there is still no clear evidence on how the use of digital tools can contribute to increasing farmers’ savings, compared with other financial tools such as bank accounts or keeping cash at home. To address this gap, we investigate factors affecting cocoa farmers’ decisions to save, as well as their savings amounts. Shedding light on saving determinants, we answer the question of whether formal and semi-formal accounts play a major role in savings accumulation. For our study, we employ data from a structured telephone survey conducted in 2021 among 405 randomly sampled cocoa farmers. Results from an interval regression suggest that bank account usage is associated with higher savings amounts. In contrast to male cocoa farmers, females seem to use mobile savings tools to their benefit. Our analysis further reveals the importance of education in household financial resource management. We provide valuable results for public policymakers and the private sector towards responsible financial inclusion and pro-poor development of digital financial services. [ABSTRACT FROM AUTHOR]

The insufficient financial services represented by short-term loans for long-term investments have seriously constrained the sustainable green innovation of enterprises and hindered their green transformation. This study examined the role and mechanisms of rapidly developing digital finance in alleviating the adverse effects of short-term loans for long-term investments on corporate sustainable green innovation, using an interaction term model and panel data of listed companies in China from 2011 to 2021, as well as the urban digital finance index. The results found that: ① Short-term loans for long-term investments significantly reduced corporate sustainable green innovation ability, whereas the development of digital finance significantly alleviated the adverse effects of short-term loans for long-term investments on corporate sustainable green innovation. This conclusion still held after a series of robustness tests. ② Heterogeneity analysis indicated that the mitigating effect of digital finance on corporate sustainable green innovation in the context of short-term loans for long-term investments was significantly heterogeneous due to the existence of associations between enterprises and banks, the lifecycle of enterprises, pollution levels, and differences in environmental regulatory intensity across regions. ③ Mechanism analysis showed that digital finance significantly alleviated the adverse effects of short-term loans for long-term investments on corporate sustainable green innovation through optimizing corporate financing, internal and external governance, and research and development investments. Financing mechanisms mainly included improving financial service accessibility as well as reducing corporate credit costs and financing constraints. Internal and external governance mechanisms primarily included increasing corporate social attention, strengthening internal control, and reducing shortsighted managerial behaviors. R&D investment mechanisms primarily included upgrading the human capital structure of enterprises and increasing R&D investments. Each region should fully utilize digital finance to empower enterprise development, improve capital allocation efficiency, meet diversified financial needs of enterprises, deepen the concept of green development, enhance social environmental protection and supervision awareness, improve internal governance of enterprises, and continuously promote green innovation and development of enterprises. [ABSTRACT FROM AUTHOR]

The past few years have been marked by significant global uncertainties triggered by continuous "black swan" events. This symposium examines economic uncertainties from these events, policy risk, and the role of digital finance in surmounting these uncertainties. The main themes comprise digital finance and economic resilience; blockchain and corporate performance; digital finance and risk; digital financial services and pandemic; Fintech and economic resilience; and sustainable digital finance. The findings have significant research and policy ramifications on the role of digital finance in dealing with global economic uncertainties resulting from both natural and human-made crises. [ABSTRACT FROM AUTHOR]

The Sustainable Development Goals (SDGs) have made it necessary for us to reevaluate the connection between environmental preservation and economic growth. The article uses Chinese city-level panel data from 2011 to 2019 to analyze the relationship between digital finance (DF) and environmental performance (EP), relaxing the linear relationship in the conventional empirical model and applying the partial linear functional-coefficient (PLFC) model, in order to better understand the factors influencing EP. The findings indicate as follows: (i) DF can greatly improve EP, and the robustness analysis confirms this statement. (ii) Science, technology, and innovation (STI) influence the promotion effect of DF on EP; when the level of STI exceeds a certain threshold, the promotion effect of DF on EP increases, and this effect increases with the level of STI. (iii). There is substantial geographical variation in the moderating influence of STI level. It has a larger role in eastern coastal cities. Finally, policy suggestions are offered to promote DF and increase EP based on the nonparametric link between those two variables. [ABSTRACT FROM AUTHOR]

This paper investigates whether and how digital economy (especially digital platforms and digital finance) restrains the informal economic activities in China measured by the MIMIC (multiple indicators multiple causes) model. Using Chinese provincial panel data from 1995 to 2020, we find that the average size of China's provincial informal economy displays a five-stage fluctuation, ranging from 13.63 % to 17.53 %. More importantly, we uncover a robust "inverted U-shaped" nonlinear relationship between the digital platform development and the informal economy, with a turning point of 0.4189. Initially, the development of digital platforms increases informal economic activities by disrupting traditional sectors, causing new types of tax evasion, challenging regulators and raising digital crime. However, beyond a certain threshold, digital platforms can overcome these problems through more job creations and improved regulation. Meanwhile, the digital financial development is proved to have a negative impact on the informal economy because it can offer much more advantages in addressing informality such as making payments transparent, easing credit constraints, raising total income, helping governments reach people and businesses. Our study provides convincing evidence and valuable advice for policymakers when developing digital economy to curb the informal economy. [ABSTRACT FROM AUTHOR]

The digital economy has introduced new ideas and methods for the high-quality development of agriculture, becoming a driving force for enhancing agricultural production efficiency. This manuscript utilizes balanced panel data from 1,503 counties and employs the three-stage DEA-Malmquist method to measure agricultural total factor productivity (hereinafter referred to as ATFP). Fixed effect models and mediation models are used to explore the impact and mechanisms of digital rural development on ATFP. The research findings indicate that both ATFP and digital rural development are increasing, although regional disparities exist. The eastern region has higher levels of digital rural development and ATFP compared to the central and western regions. Analysis using fixed effect models and mediation models shows that digital rural development has a significant positive effect on ATFP during the sample period, with rural inclusive finance and human capital playing a mediating role. The impact of digital rural development on ATFP varies across regions. It is more prominent in main grain-producing and main grain-consuming areas, and less significant in balanced production and consumption areas. Geographically, the impact is stronger in the eastern region than in the central and western regions. When categorized by the type of agricultural production, the impact is significant in livestock areas, while relatively smaller in planting industry areas. Based on these findings, it is recommended that local areas tailor their approach to digital rural construction and formulate agricultural production policies that leverage regional strengths and address weaknesses. Additionally, promoting the development of rural inclusive finance, cultivating digital talent, improving talent introduction policies, and expanding the rural digital talent pool are suggested to build momentum for agricultural development. [ABSTRACT FROM AUTHOR]

This study investigates the role of automated controls and streamlined compliance in managing risk in digital finance institutions. Through a mixed-methods approach, combining quantitative analysis and qualitative insights from leading Indian digital finance companies (CRED, ZEST MONEY and PHONE PAY), the research examines the effectiveness of advanced technologies in enhancing risk management practices. The study found strong positive correlations between the adoption of automated controls and key performance metrics, including the fraud detection rate (0.68), regulatory reporting accuracy (0.72), and overall risk management effectiveness (0.75). Regression analysis revealed that automated control implementation was the strongest predictor of risk management effectiveness. A comparative analysis of different digital finance models highlights the varying challenges and benefits of implementing these technologies. This study proposes a holistic, future-proof framework that integrates AI, machine learning and blockchain for real-time risk monitoring, automated regulatory reporting and dynamic compliance management. This framework addresses the limitations of the current fragmented approaches and offers a scalable solution that is adaptable to evolving regulatory landscapes. The findings of this study have significant implications for practitioners and policymakers, emphasizing the need for investment in strong automated systems and adaptive regulatory frameworks. While acknowledging the limitations in sample size and longitudinal scope, this research provides a foundation for future studies and offers practical insights for enhancing risk management in the rapidly evolving digital finance sector. The study concludes that effective integration of automated controls and streamlined compliance is crucial for ensuring the resilience, integrity and sustainable growth of the digital finance ecosystem. [ABSTRACT FROM AUTHOR]

This paper examines the complex connection between corporate financialization and the related financial risks, specifically in the context of China's economic reforms and the growing digital financial industry. Although digital finance has become increasingly prevalent, there are growing concerns about its negative effects, such as the creation of financial bubbles in sectors like real estate, which pose a threat to the stability of China's actual economy. Corporations in China are becoming more dependent on digital assets and cash flows as they manage their financial operations. This is contributing to an increased level of financial risk in the country. This study reveals a non-linear, U-shaped correlation between company financialization and financial risk by utilizing a comprehensive theoretical framework that includes transaction cost theory, business management theories, competitive theories, and resource allocation theories. In contrast to the linear models typically observed in economics, our research indicates that financial risk first declines as financialization increases but then progressively intensifies. This paper also examines phenomena such as the "reservoir effect," along with associated "crowding-out" and "risk contagion" effects. The research demonstrates that the process of digital financialization intensifies the financial risk faced by businesses, presenting a substantial obstacle to the long-term growth of China's real economy. The study offers unique insights on how to reduce financial risks during the digital transformation age, making significant contributions to both academic research and practical implementation. This analysis is especially relevant for comprehending how corporate financial conduct is influencing, and being influenced by, the digital financial ecosystem. It also provides policy recommendations for attaining a balanced growth path in China's digital finance landscape. [ABSTRACT FROM AUTHOR]

Enhancing economic resilience is crucial to sustainable development. However, issues such as resource misallocation and financing difficulties have severely impacted supply chain stability and security. The rise of digital finance presents potential solutions to these problems. Based on panel data from 30 provinces in China from 2011 to 2020, this study explores the mechanisms and pathways through which digital finance enhances economic resilience. The results reveal four key findings. First, the development of digital finance significantly enhances economic resilience by improving innovation capabilities and consumption vitality. Second, a high degree of marketization strengthens the promoting effect of digital finance on economic resilience. Third, in areas with higher levels of industrial advancement or lower levels of traditional financial development, the enhancement effect of digital finance on economic resilience is more significant. Fourth, digital finance significantly improved the economic resilience of geographically adjacent areas through spatial spillover effects. Overall, this study provides a new perspective on the impact of digital finance on economic resilience in developing countries such as China. In addition to its academic contributions, this study offers detailed practical implications. [ABSTRACT FROM AUTHOR]

With the worsening of global climate change, balancing economic development with the ecological environment has become an important concern and topic of research across the world. It is worthwhile to study digital finance as a product of the organic combination of finance and digital technology; moreover, the study would include how it affects indirect household carbon emissions while increasing income and promoting consumption. Based on a theoretical analysis, panel data on 30 Chinese provinces from 2014 to 2020 are used to empirically test the impact of digital financial development on indirect household carbon emissions and the underlying mechanism. The impact of digital financial development on the inequality in indirect carbon emissions between urban and rural households is further explored. The research findings show that the development of digital finance increases indirect household carbon emissions. Heterogeneity analysis shows that digital financial development has a greater impact on indirect household carbon emissions in central and western regions and urban areas than in eastern and rural areas. The mechanism analysis shows that the development of digital finance reduces indirect household carbon emissions by promoting green technological innovation; furthermore, it increases indirect household carbon emissions by increasing household income levels. Further analysis shows that the development of digital finance aggravates the inequality in indirect carbon emissions between urban and rural households, and that the urban–rural inequality in household income is an important channel for this effect. The above research conclusions indicate that the development of digital finance results in economic growth at the expense of increasing indirect household carbon emissions and aggravating the urban–rural inequality of such emissions. The above results not only enrich relevant theories of digital finance but also help coordinate the relationship between the development of digital finance and household carbon emissions, which is of great importance for addressing climate change and ensuring sustainable economic development. [ABSTRACT FROM AUTHOR]

Building trust is a major challenge in digital crowdfunding environments. The existing information asymmetries between fund-seeking entrepreneurs and potential investors require the implementation of signaling strategies between both economic agents in order to generate trust and incentivize investment. This study performs a qualitative comparative analysis (QCA) to explore the interplay of visual content and social networks as information cues signaling trust. The data are sourced from Startupxplore, a Spanish equity crowdfunding platform. Configurational analysis reveals a certain degree of substitutability between traditional visual cues (images, videos) and reporting presence in social networks (Instagram, Facebook, Twitter). The results show different information disclosure strategies using traditional visual cues and social networks that lead to crowdfunding success and overfunding: substitute, mixed and unique strategies. The originality of this research lies in identifying such strategies using a configurational approach that addresses the causal complexity behind success and overfunding phenomena in equity crowdfunding, and in targeting visual cues and social networks presence as signals. This entails theoretical contributions to signaling theory in digital financial environments as well as managerial implications for entrepreneurial fundraising. [ABSTRACT FROM AUTHOR]