Abstract
The integration of technology and finance is an important measure to boost the high-quality development of the real economy. This paper takes the pilot project known as “Combining Technology and Finance” as a quasi-natural experiment, and employs the progressive Difference-in-Difference methodology to examine the impact of Science and Technology Finance Policy on enterprise investment efficiency and its mechanism. The results show that the science and technology finance policy can significantly improve the firm’s investment efficiency. The effects of the science and technology finance policy are heterogeneous at the corporate level, among which, the effects are more obvious in the state owned and large enterprises. By investigating the action mechanism, it is found that the implementation of policy promotes firm’s investment efficiency mainly through promoting digital transformation, easing financial constraints, and reducing agency costs. The research findings of this paper have clear policy implications for high-quality transformation and development in the new era in China.