• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
    • Abstracting/ Indexing:  CNKIGoogle ScholarCrossref
    • E-mail: joebm.editor@gmail.com
JOEBM 2022 Vol.10(1): 41-45 ISSN: 2301-3567
DOI: 10.18178/joebm.2022.10.1.671

An Investigation of the Relationship between Digital Finance Development and SMEs’ Investment Efficiency

Yue Xuan

Abstract—The digitalization of finance has shown many benefits for firms in different areas worldwide, but whether it is more of assistance or a hindrance to companies with existing disadvantages in gathering finance is still to be questioned. This paper explores the effect of digital finance development on the investment efficiency of SMEs, treating digital finance development as the independent variable and investment efficiency as the dependent variable, with several other controlled variables clearly defined. The paper uses OLS benchmark regressions with a heterogeneity test, concluding that the development of digital finance lowers the investment efficiency of SMEs and is not affected by company size as a controlled variable. Several potential reasons could lead to this conclusion, which would be discussed in detail in the passage.

Index Terms—Digital finance, investment efficiency, firm size, SME, benchmark regression, heterogeneity test, OLS regression.

Yue Xuan is with Bayes Business School, City University of London, United Kingdom (e-mail: yue.xuan@cass.city.ac.uk).

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Cite:Yue Xuan, "An Investigation of the Relationship between Digital Finance Development and SMEs’ Investment Efficiency," Journal of Economics, Business and Management vol. 10, no. 1, pp. 41-45, 2022.

Copyright © 2022 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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