The moderating roles of financing, return, and attention effects of digital economy index and green financing development among Small and Medium Enterprises (SMEs)

Abstract

This study aimed to explore the relationship between the digital economy and green financing among small and medium enterprises (SMEs) in China and to examine the moderating roles of financing, return, and attention effects on this relationship. Utilizing a quantitative research design and secondary research method, data were collected from green SMEs listed on the Growth Enterprise Market (GEM) and National Equities Exchange and Quotations (NEEQ) from 2018 to 2022. Principal component analysis, descriptive statistical analysis, correlation analysis, and regression analysis were conducted to examine the relationship between the digital economy index and green financing development. Additionally, moderating effect models were established to assess the roles of financing, return, and attention effects. The findings revealed consistent growth in the digital economy index with the mean rising from 0.457 in 2018 to 0.510 in 2022. The green financing development level indicator increased by 0.07 in 2019 compared to 2018, but slightly declined in 2020. It began to gradually recover from 2021, reaching its highest mean value of 0.599 in 2022. The financing effect eased SME financing constraints, the return effect reduced financial asset return disparities, and the attention effect increased public and investor interest in green SMEs. The study concludes that digital economy significantly promote green financing among SMEs. Although financing constraints and return disparities weakened this relationship, public and investor attention enhanced it.