A Study on the Impact and Mechanism of Digital Transformation on Total Factor Productivity of Small and Medium-sized Banks
WANG Shuhua1, LIU Huichao2, FAN Rui2
1. Institute of Shanxi Merchant Studies,Shanxi University of Finance and Economics, TaiYuan 030006, China; 2. School of Finance,Shanxi University of Finance and Economics, TaiYuan 030006, China
Abstract Based on the background of bank digital transformation and samples of 106 small and medium-sized banks from 2012 to 2020, this paper empirically tests the impact of bank digital transformation on bank total factor productivity and its mechanism on the basis of using SBM-LM model to measure bank total factor productivity and bank annual report text mining to measure bank digital transformation index. The results show that digital transformation can significantly improve the total factor productivity of small and medium-sized banks. At the same time, digital transformation will have a heterogeneous impact on the total factor productivity of small and medium-sized banks due to their different attributes and scales. digital transformation has the strongest effect on the total factor productivity of joint-stock banks, followed by agricultural and commercial banks and urban commercial banks. In terms of impact mechanism, small and medium-sized banks focus on improving total factor productivity by reducing the input cost of fixed assets, increasing the level of net interest income and the scale of intermediary business. The results results provide ideas and experience for better promoting the digital transformation of small and medium-sized banks and promoting the improvement of total factor productivity of banks.
WANG Shuhua,LIU Huichao,FAN Rui. A Study on the Impact and Mechanism of Digital Transformation on Total Factor Productivity of Small and Medium-sized Banks. Economic Survey, 2023, 40(4): 0149.
2023, Vol. 40 
