Research on the impact of coordinated development of digital finance on shadow banking activities of nonfinancial firms under environmental regulation

In recent years, the coordinated development of digital finance has significantly influenced corporate financing behavior and shadow banking activities. However, the relationship between digital finance and shadow banking, particularly under the influence of environmental regulation, remains underexplored. This study utilizes data from non-financial firms listed on the Shanghai and Shenzhen Stock Exchanges in China from 2012 to 2022, constructing an index of the coordinated development of digital finance using a coupling coordination model. It investigates the impact mechanism of coordinated development of digital finance on corporate shadow banking activities under environmental regulation. The results reveal that the coordinated development of digital finance significantly promotes shadow banking activities of non-financial firms, demonstrating a "U-shaped" nonlinear relationship. Environmental regulation moderates this effect. Under low-intensity environmental regulation, an increase in regulation strengthens the promoting impact of digital finance on shadow banking activities and weakens its nonlinear influence. In contrast, under high-intensity environmental regulation, digital finance's "U-shaped" effect on shadow banking activities becomes less pronounced. Furthermore, heterogeneity analysis shows that the promoting effect is more significant for firms facing higher financing constraints, state-owned firms, and regions with higher marketization. This study provides empirical evidence on the dynamic evolution of shadow banking activities and offers policy recommendations for optimizing environmental regulations and promoting the development of digital finance.