@article{zhang_digital_2026,
	title = {Digital lifeboat: {Can} {Fintech} development prevent shipwrecks in the textile industry?},
	issn = {1222-5347},
	shorttitle = {Digital lifeboat},
	url = {https://revistaindustriatextila.ro/images/2026/2/007%20QIONGWEN%20ZHANG_INDUSTRIA%20TEXTILA%20no.2_2026.pdf},
	doi = {10.35530/IT.077.02.202551},
	abstract = {The textile industry’s lengthy supply chains, narrow profit margins, and substantial working capital pressures render
financial risk management a critical determinant of sustainable industry development. Digital finance, through
technological innovation, offers textile firms novel risk management tools. Drawing on information asymmetry theory and
financing constraint theory, this study examines how digital finance affects textile firms’ financial risk and the underlying
mechanisms. Using 3,443 firm-year observations from Chinese A-share textile industry listed companies spanning
2014–2023, we employ two-way fixed effects models to identify these relationships. Results show that digital finance
development significantly reduces textile firms’ financial risk levels. Mechanism tests reveal that digital finance operates
through two pathways, namely alleviating information asymmetry and easing financing constraints, with these pathways
exhibiting complementary effects. Heterogeneity analysis demonstrates that digital finance’s risk-mitigating effects are
more pronounced in central and western regions, firms with greater media coverage, non-state-owned enterprises, and
large firms. These findings provide theoretical foundations and practical guidance for textile firms to leverage digital
finance tools to optimise financing strategies and enhance risk management capabilities, while also offering policy
insights for promoting digital transformation and high-quality development in the textile industry},
	urldate = {2026-05-17},
	journal = {Industria Textila},
	author = {Zhang, Qiongwen and Liu, Huifang and Zeng, Hongjun and Yan, Han and Ma, Shenglin},
	month = may,
	year = {2026},
	pages = {244},
}