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Does bank FinTech improve corporate innovation?

Author

Listed:
  • Tan, Zhuohong
  • Wang, Handi
  • Hong, Yunzhe

Abstract

This study investigates the effects of bank FinTech on corporate innovation. Building a large sample of Chinese commercial banks and listed firms over 2010–2020, we find that bank FinTech promotes corporate innovation and the results are consistent. We also find that bank FinTech enhances corporate innovation by mitigating the inhibitory effects of financing constraints and management costs. In addition, the positive effect is more pronounced in firms with poorer financial endowments and private firms. Overall, we provide a timely study of the value of bank FinTech in emerging countries like China from the brand-new perspective of corporate innovation.

Suggested Citation

  • Tan, Zhuohong & Wang, Handi & Hong, Yunzhe, 2023. "Does bank FinTech improve corporate innovation?," Finance Research Letters, Elsevier, vol. 55(PA).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323002039
    DOI: 10.1016/j.frl.2023.103830
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    References listed on IDEAS

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    More about this item

    Keywords

    Bank FinTech; Corporate innovation; Commercial banks; China;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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