IDEAS home Printed from https://ideas.repec.org/a/taf/eurjfi/v29y2023i15p1761-1792.html
   My bibliography  Save this article

How do fintech start-ups affect financial institutions’ performance and default risk?

Author

Listed:
  • Christian Haddad
  • Lars Hornuf

Abstract

We examine the impact of fintech start-ups on the performance and default risk of traditional financial institutions. We find a positive relationship between fintech start-up formations and incumbent institutions’ performance for the period 2005–2018 and a large sample of financial institutions from 87 countries. We further analyze the link between fintech start-up formations and the default risk of traditional financial institutions. Fintech start-up formations decrease stock return volatility of incumbent institutions and decrease the systemic risk exposure of financial institutions. The findings indicate that legislators and financial supervisory authorities should closely monitor the development of fintech start-ups, because fintechs not only have a positive effect on the financial sector’s performance but also can improve financial stability relative to the status quo.

Suggested Citation

  • Christian Haddad & Lars Hornuf, 2023. "How do fintech start-ups affect financial institutions’ performance and default risk?," The European Journal of Finance, Taylor & Francis Journals, vol. 29(15), pages 1761-1792, October.
    • Handle: RePEc:taf:eurjfi:v:29:y:2023:i:15:p:1761-1792
    DOI: 10.1080/1351847X.2022.2151371
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1351847X.2022.2151371
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1351847X.2022.2151371?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chia-Nan Wang & Nhat-Luong Nhieu & Wei-Lin Liu, 2024. "Unveiling the landscape of Fintech in ASEAN: assessing development, regulations, and economic implications by decision-making approach," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-16, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:eurjfi:v:29:y:2023:i:15:p:1761-1792. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/REJF20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.