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Corporate resilience to the COVID-19 pandemic: The role of digital finance
This paper studies the role of digital finance in shaping corporate resilience to the COVID-19 pandemic by analyzing the stock prices of Chinese listed firms. We find that firms located in regions with higher levels of digital finance experience fewer losses and recover more quickly from the COVID-1...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Elsevier B.V.
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9159783/ http://dx.doi.org/10.1016/j.pacfin.2022.101791 |
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author | Xia, Yanchun Qiao, Zhilin Xie, Guanghua |
author_facet | Xia, Yanchun Qiao, Zhilin Xie, Guanghua |
author_sort | Xia, Yanchun |
collection | PubMed |
description | This paper studies the role of digital finance in shaping corporate resilience to the COVID-19 pandemic by analyzing the stock prices of Chinese listed firms. We find that firms located in regions with higher levels of digital finance experience fewer losses and recover more quickly from the COVID-19 pandemic. Further analysis shows that digital finance helps build corporate resilience by facilitating firms' access to external financing and reducing financing costs. We further document that the positive effects of digital finance on corporate resilience are more pronounced for small firms, non-state-owned enterprises, and low cash holding firms. Overall, these findings suggest that digital finance improves corporate resilience by mitigating financing frictions. |
format | Online Article Text |
id | pubmed-9159783 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Elsevier B.V. |
record_format | MEDLINE/PubMed |
spelling | pubmed-91597832022-06-02 Corporate resilience to the COVID-19 pandemic: The role of digital finance Xia, Yanchun Qiao, Zhilin Xie, Guanghua Pacific-Basin Finance Journal Article This paper studies the role of digital finance in shaping corporate resilience to the COVID-19 pandemic by analyzing the stock prices of Chinese listed firms. We find that firms located in regions with higher levels of digital finance experience fewer losses and recover more quickly from the COVID-19 pandemic. Further analysis shows that digital finance helps build corporate resilience by facilitating firms' access to external financing and reducing financing costs. We further document that the positive effects of digital finance on corporate resilience are more pronounced for small firms, non-state-owned enterprises, and low cash holding firms. Overall, these findings suggest that digital finance improves corporate resilience by mitigating financing frictions. Elsevier B.V. 2022-09 2022-06-02 /pmc/articles/PMC9159783/ http://dx.doi.org/10.1016/j.pacfin.2022.101791 Text en © 2022 Elsevier B.V. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active. |
spellingShingle | Article Xia, Yanchun Qiao, Zhilin Xie, Guanghua Corporate resilience to the COVID-19 pandemic: The role of digital finance |
title | Corporate resilience to the COVID-19 pandemic: The role of digital finance |
title_full | Corporate resilience to the COVID-19 pandemic: The role of digital finance |
title_fullStr | Corporate resilience to the COVID-19 pandemic: The role of digital finance |
title_full_unstemmed | Corporate resilience to the COVID-19 pandemic: The role of digital finance |
title_short | Corporate resilience to the COVID-19 pandemic: The role of digital finance |
title_sort | corporate resilience to the covid-19 pandemic: the role of digital finance |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9159783/ http://dx.doi.org/10.1016/j.pacfin.2022.101791 |
work_keys_str_mv | AT xiayanchun corporateresiliencetothecovid19pandemictheroleofdigitalfinance AT qiaozhilin corporateresiliencetothecovid19pandemictheroleofdigitalfinance AT xieguanghua corporateresiliencetothecovid19pandemictheroleofdigitalfinance |