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How monetary policies and fintech shape the peer effect of corporate financialization: Evidence from China's listed companies

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  • Feng, Yongqi
  • Zhang, Haolin
  • Zhang, Lei

Abstract

As a prominent manifestation of the deep integration between real-sector enterprises and financial markets, corporate financialization has developed increasingly complex behavioral dynamics, particularly amid the rapid advancement of financial technology (FinTech). This study investigates its influence on the peer effects of corporate financialization among Chinese A-share listed companies from 2013 to 2022. Using various regression models, we find that firms tend to imitate the financial investment behaviors of their peers within the same industry or geographic region (i.e., the “peer effect”). Additionally, when imitating the investment behavior of their industrial or regional peers, companies are more likely to follow high-quality peers characterized by low financing constraints or high-capacity-utilization rates. Furthermore, FinTech plays a moderating role in the peer effects of corporate financialization, with effects that may either enhance or weaken peer influence. Specifically, under expansionary monetary policy, a higher level of FinTech development tends to weaken the peer effect. Conversely, under contractionary monetary policy, greater FinTech development tends to amplify the peer effect.

Suggested Citation

  • Feng, Yongqi & Zhang, Haolin & Zhang, Lei, 2025. "How monetary policies and fintech shape the peer effect of corporate financialization: Evidence from China's listed companies," International Review of Financial Analysis, Elsevier, vol. 107(C).
    • Handle: RePEc:eee:finana:v:107:y:2025:i:c:s1057521925006003
    DOI: 10.1016/j.irfa.2025.104513
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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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