Fintech and Financing Constraints of Enterprises: Evidence from China

Abstract

Using a sample of China's A-share listed companies from 2011 to 2018, this research examines the impact of financial technology (FinTech) on financing constraints experienced by enterprises. Results show that the development of FinTech can significantly reduce firms' financing constraints, and this effect is partially mediated by facilitating firms' direct and indirect financing, and by promoting inter-bank competition. The mitigating effect of FinTech is more pronounced in non-state-owned enterprises, in small- and medium-sized enterprises, and enterprises in the more highly developed eastern region of China. The direct mitigating effect of FinTech on reducing financing constraints is stronger for companies with a higher level of innovation or a lower level of social responsibility performance. Theoretical and practical implications of our findings are discussed.

Department(s)

Business and Information Technology

Comments

National Office for Philosophy and Social Sciences, Grant 19BGL076

Keywords and Phrases

Financing Constraints; Fintech; Information Asymmetry

International Standard Serial Number (ISSN)

1042-4431

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2023 Elsevier, All rights reserved.

Publication Date

01 Jan 2023

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