The relationship between digital finance and financial fraud empirical evidence from Vietnamese small and mediumsized enterprises (Smes) for period 2014–2022

Abstract

This study investigates the relationship between the digital finance and financial fraud, a topic of growing relevance in the context of an increasingly digitalized economy. Utilizing panel data from 100 non-financial firms listed on the Vietnamese stock exchange during the period 2014–2022, the analysis applies various econometric models, including Pooled OLS, Fixed Effects Model (FEM), Random Effects Model (REM), and Generalized Method of Moments (GMM). The empirical results suggest that digital finance adoption has a significant mitigating effect on financial fraud. These findings imply that promoting the use of digital financial technologies can serve as a strategic solution to enhance corporate transparency and reduce financial misconduct risks.