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Economic policy uncertainty, fintech, and corporate risk-taking

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  • Wang, Di
  • Du, Zeyi
  • Yang, Xiao

Abstract

How to sustain corporate risk-taking amidst macroeconomic fluctuations remains a critical challenge. Utilizing a panel dataset of Chinese listed firms from 2013 to 2022, this study investigates the impact of fintech on corporate risk-taking and explores the moderating role of economic policy uncertainty. Our empirical results demonstrate that fintech significantly enhances corporate risk-taking. Mechanism analyses reveal a dual pathway. Specifically, fintech promotes risk-taking through a financing channel by relaxing external capital constraints, and through a governance channel by mitigating management opportunism and agency costs via improved information transparency. Crucially, we find that economic policy uncertainty acts as a significant institutional friction. High economic policy uncertainty erodes the positive impact of fintech, primarily by disrupting the aforementioned financing channel. Furthermore, the risk promoting effect of fintech is structurally heterogeneous, being more pronounced for state-owned and mature enterprises. These findings provide valuable implications for policymakers, highlighting that while digital finance can stimulate corporate risk-taking, its effectiveness is highly contingent upon a stable macroeconomic policy environment.

Suggested Citation

  • Wang, Di & Du, Zeyi & Yang, Xiao, 2026. "Economic policy uncertainty, fintech, and corporate risk-taking," Economic Analysis and Policy, Elsevier, vol. 93(C), pages 46-59.
    • Handle: RePEc:eee:ecanpo:v:93:y:2026:i:c:p:46-59
    DOI: 10.1016/j.eap.2026.07.021
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