Supply chain financing, digital financial inclusion and enterprise innovation: Evidence from China

Supply chain financing (SCF) has become an important supplement for financing access, and enterprise innovation is essential for enterprise development. In this paper, we explore the effects of SCF on enterprise innovation in the context of digital financial inclusion (DFI) development. Using the fixed effects model based on the sample of A-share listed firms in Shenzhen Stock Exchange from 2011 to 2021, we find that SCF significantly increases enterprise innovation. The DFI development has positive moderating effects on the relationship between SCF and enterprise innovation. The effect occurs by easing firms' financial constraints. Heterogeneity analysis results show that the promotive relationship is more significant among non-state-owned enterprises (non-SOEs), high-tech enterprises, enterprises in eastern regions and enterprises with low information disclosure quality. Furthermore, we find that in the context of DFI development, SCF promotes innovation activities for state-owned enterprises (SOEs) but it inhibits them for non-high-tech enterprises, enterprises in non-eastern regions and enterprises with high information disclosure quality. After robustness tests, we find that the results of this study remain valid.