Digital Infrastructure Development and Financial Market Stability
Against the backdrop of improving infrastructure and the information environment,it is significant to explore the effects of China's digital economy development in the financial market.Based on a sample of A-share listed companies from 2008 to 2021,this paper examines the impact of digital infrastructure development on the stability of the financial market,using the"Broadband China"strategy as an exogenous shock.It has been found that digital infrastructure development significantly reduces the risk of stock price crashes.Further research shows that digital infrastructure development mitigates the risk of stock price collapse by lowering the risk of corporate disclosure,operational risk,and supply chain concentration;this negative relationship is more significant in firms with low sensitivity to"bad news",low degree of operational diversification,and high degree of supply chain closeness,as well as those in the central and western regions.This negative relationship is more pronounced in firms with low sensitivity to"bad news",low business diversification,and high supply chain closeness,and in the Midwest.This paper provides empirical evidence that digital infrastructure construction reduces the risk of corporate stock price collapse,which not only enriches the research on the economic consequences of digital infrastructure construction from the perspective of financial market stabilization but also provides a reference for the country to further promote the"new infrastructure"and establish a long-term mechanism for preventing financial risks.
Digital Infrastructure DevelopmentFinancial Market StabilityStock Price Crash Risk
万方数据
维普
