Digital finance, capital misallocation and corporate innovation

This paper empirically analyses the impact mechanism of digital finance on corporate innovation, focusing on the mediating role of capital misallocation. The results show that digital finance significantly promotes corporate innovation, and capital misallocation plays a mediating role. Specifically, compared with state-owned enterprises, digital finance in non-state-owned enterprises is more significant in promoting corporate innovation. Additionally, compared with small and medium-sized enterprises, this promotion is more obvious in large enterprises. The findings of this paper pass the robustness test, indicating the reliability and validity of our results.