Author(s)

Jing Wang^*, Ping Peng

Affiliation(s)

School of Finance and Economics, Guangdong University of Science and Technology, Dongguan 523000, Guangdong, China.

Corresponding Author

Jing Wang

ABSTRACT

As an essential component of the digital economy, digital finance is gradually becoming a key driver of cost reduction, efficiency enhancement, and high-quality development for enterprises. This paper analyzes 4,054 panel data points from 588 listed manufacturing firms in Dongguan spanning 2015 to 2024. Using financial and innovation R&D data from the CSMAR database, and employing SPSS for multiple linear regression analysis, the study empirically investigates the mechanisms and pathways through which digital finance influences enterprise cost optimization. The results reveal: (1) digital finance and soft technology investments significantly increase total asset turnover, validating their role in enhancing resource allocation efficiency; (2) R&D investment exhibits dual effects—while the R&D expenditure ratio positively affects firm efficiency, excessive allocations to R&D personnel and direct inputs impose short-term cost burdens; (3) new productive forces exhibit a phased negative impact, suggesting that digital infrastructure has not yet been fully converted into cost advantages; (4) financial structure and profitability form the core support for cost optimization. The study provides empirical evidence for digital transformation in the manufacturing industry and offers policy recommendations for both enterprises and government bodies.

KEYWORDS

Digital finance; Cost optimization; Manufacturing industry; Dongguan; Empirical analysis

CITE THIS PAPER

Jing Wang, Ping Peng. Cost optimization pathways driven by digital finance: empirical evidence from Dongguan’s manufacturing sector. World Journal of Economics and Business Research. 2025, 3(4): 60-67. DOI: https://doi.org/10.61784/wjebr3069.

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