Management Review ›› 2021, Vol. 33 ›› Issue (11): 106-120.

• Digital Governance and Digital Innovation • Previous Articles    

Corporate Digitalization, Government Subsidies and Corporate External Financing: An Empirical Study Based on Chinese Listed Companies

Gao Yuchen1, Wan Yinglin2, Zhang Si3   

  1. 1. School of Public Policy and Management, Tsinghua University, Beijing 100084;
    2. School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100876;
    3. School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190
  • Received:2020-09-07 Published:2022-01-12

Abstract: Whether corporate digitalization serves as supplement by decreasing information asymmetry towards the relationship between government subsidies and corporate external financing has become more and more important under digital economy. However few researches have been conducted on this issue. We employ the data of the manufacturing companies listed on Shanghai and Shenzhen A-share mainboard in 2008-2018 to study the impact of corporate digitalization and government subsidies on corporate external debt financing. The results show that corporate digitalization can promote short-term external financing, while obtaining government R&D or non-R&D subsidies can promote long-term external financing of listed firms. Meanwhile, digitalization can promote the positive impact of government R&D as well as non-R&D subsidies on corporate long-term debt financing, while R&D subsidies can strengthen the positive impact of digitization on corporate short-term debt financing. Our research enriches the literature of corporate digitalization and contributes to the research on government R&D subsidies especially on its signal effects. In addition, our findings also provide important suggestions for the policy making of government and digitalization strategy of firms.

Key words: corporate digitalization, government R&D subsidies, non-R&D subsidies, corporate financing, signaling effect