Abstract: Taking the A-share listed companies in Shanghai and Shenzhen Exchanges from 2011 to 2020 as the research object, the impact of digital finance on enterprise value is analyzed by using the two-way fixed-effect model. It is found that digital finance can significantly promote enterprise value, and the effect is long-term. Further research finds that digital finance can increase enterprise value by reducing corporate leverage ratio and corporate financing costs. The heterogeneity test finds that compared with the eastern region, the effect of digital finance on corporate value promotion in the central and western regions is more significant, which indicates the inclusive characteristics of digital finance are more obvious. In addition, stronger supervision of the financial market is more conducive to promoting corporate value than weak supervision.

Key words: digital finance, corporate value, corporate leverage ratio, financing cost