Assessing the impact of digital finance and financial constraints on financial performance in the new energy enterprises: empirical evidence from the Asia - Pacific region

Abstract

Amidst the transformative challenges faced by new energy enterprises in the ever-evolving energy landscape, encompassing heightened competition and intricate uncertainties, digital innovation emerges as an imperative strategy to navigate these disruptions. Drawing on a dataset encompassing 317 new energy firms listed on stock exchanges across 13 Asia-Pacific countries from 2018 to 2022, this study employs regression models such as OLS, FEM, REM, and the FGLS method. The primary focus is to scrutinize the impact of Digital finance and Financial constraints to the Financial performance. The empirical findings underscore the substantial positive contribution of digital finance to enhancing the financial performance of industry players. Conversely, financial constraints not only exert a detrimental impact on financial outcomes but also temper the favorable effects of digital finance. Notably, the sway of these factors fluctuates contingent on the scale and ownership structure of the companies. Building upon these insights, the research proffers nuanced solutions and strategic recommendations to foster stability and propel the digital transformation journey within the new energy domain, steering it towards a trajectory of sustainable development.