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How does fintech affect corporate ESG behavior: The role of government efficiency

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  • Liu, Jintao
  • Tian, Gangyuan
  • Sun, Yuanyuan

Abstract

Fintech has rapidly evolved in recent years. This study explores the possible implications of fintech for corporate ESG behavior. Grounded in a research sample of publicly listed Chinese companies from 2015 to 2024, we found evidence that fintech greatly improves firm ESG performance. The positive effect is more evident when government efficiency is low. The result holds after properly dealing with endogeneity concerns. Further analysis reveals that lower alternative financing costs and stronger information transparency are two key channels underpinning the main relation. In conclusion, this article gains new insights into the unintended consequences of fintech, enriching fintech and ESG research.

Suggested Citation

  • Liu, Jintao & Tian, Gangyuan & Sun, Yuanyuan, 2025. "How does fintech affect corporate ESG behavior: The role of government efficiency," Finance Research Letters, Elsevier, vol. 86(PC).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pc:s1544612325017428
    DOI: 10.1016/j.frl.2025.108488
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