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 index and the development of 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 was collected from various databases and reports, covering green SMEs listed on the GEM and NEEQ from 2018 to 2022. Data was processed and analyzed using SPSS and Stata software. Principal component analysis was employed to construct the digital economy index, while 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. Despite a low overall level, the findings revealed consistent growth in the digital economy index and a positive trend in green financing development. 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. Correlation and regression analyses revealed a significant positive relationship between the digital economy index and green financing development. Moderating effects showed that financing and return effects weakened, while the attention effect strengthened the relationship. The study concludes that digital economy advancements significantly promote green financing among SMEs. Although financing constraints and return disparities weakened this relationship, public and investor attention enhanced it. The moderating effects of financing constraints, return disparities, and investor attention must be considered in policy formulation.