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Financial technology and firm productivity: Evidence from Chinese listed enterprises

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  • Wang, Di
  • He, Bin
  • Hu, Zhimu

Abstract

Recent data show that the number of fintech investment deals is increasing, implying that fintech is gradually penetrating various industries and may have far-reaching impacts on industrial production and operations. This paper studies the impact of fintech on firm productivity and the mediating effects of financing constraints, information asymmetry and technological innovation. This paper collects data from 1662 samples of Chinese listed firms from 2011 to 2022 and screens the number of firms that meet the fintech criteria to construct the regional fintech development level. Our analysis shows that fintech has a positive effect on enhancing firm productivity. Path analysis reveals that digital transformation indirectly enhances firm productivity by reducing information asymmetry, easing financing constraints, and improving technological innovation. Our research introduces innovative approaches for developing indicators in financial technology. The insights generated from this study hold potential value for both entrepreneurs and governmental bodies.

Suggested Citation

  • Wang, Di & He, Bin & Hu, Zhimu, 2024. "Financial technology and firm productivity: Evidence from Chinese listed enterprises," Finance Research Letters, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324004355
    DOI: 10.1016/j.frl.2024.105405
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    Cited by:

    1. Liu, Yuxin & Liu, Wenfei, 2024. "The impact of integrating technology and finance on firm entry: Evidence from China's FinTech pilot policy," Finance Research Letters, Elsevier, vol. 70(C).
    2. Zhang, Qun & Qiu, Bin & Sun, Shaoqin, 2024. "Improving financial productivity and upgrading in global value chains," Finance Research Letters, Elsevier, vol. 67(PA).
    3. Yingji Liu & Ju Guo & Fangbing Shen & Yuegang Song, 2025. "Can artificial intelligence technology improve green total factor efficiency in energy utilisation? Empirical evidence from 282 cities in China," Economic Change and Restructuring, Springer, vol. 58(2), pages 1-34, April.
    4. Wang, Di & He, Bin & Dong, Nier & Yang, Daocheng, 2025. "Differentiated digital transformation strategies in manufacturing: The impact of firm ownership on productivity," International Review of Economics & Finance, Elsevier, vol. 99(C).
    5. Bai, Zhe & Wang, Xingdong, 2025. "Technological progress bias, wage income gap, and income equity," Finance Research Letters, Elsevier, vol. 81(C).
    6. Pan, Changchun & Meng, Xiangwei & Huang, Yuzhe, 2026. "The impact of fintech on corporate sustainable development performance: Evidence from Chinese listed companies," Research in International Business and Finance, Elsevier, vol. 81(C).
    7. Yangyang Sun & Hanqin Wang & Chunxia Zhu & Dongmei Wang, 2025. "Fintech empowerment and the new-quality productivity of enterprises: empirical evidence from Chinese listed companies," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-15, December.
    8. Qin, Teng & Qin, Chuan & Wang, Jiaxin & Xing, Haiyan, 2025. "Can the digital economy enhance enterprises' breakthrough innovation?," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    9. Wan, Jiayu & Niu, Zihan & Li, Bin, 2025. "Does Fintech improve the carbon reduction effect of green credit policy? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1258-1269.
    10. Huang, Xirong & Dong, Jichang & Li, Xiuting, 2025. "Fintech, technological innovation and regional economic growth: Theoretical modeling and empirical evidence," China Economic Review, Elsevier, vol. 91(C).
    11. Sun, Zhiyao & Che, Shuai & Wang, Jie, 2024. "Deconstruct artificial intelligence's productivity impact: A new technological insight," Technology in Society, Elsevier, vol. 79(C).
    12. Ye, Tifang & Zhou, Yanli & Zhang, Zhigang & Ge, Xiangyu & Yang, Xingxing, 2024. "Research on the effect of fintech on inefficient investment: From the perspective of information effect and resource effect," Finance Research Letters, Elsevier, vol. 69(PB).

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    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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