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Corporate corruption governance: the inhibitory effect of digital transformation on fintech

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  • Cheng, Jiahao

Abstract

Corporate corruption remains a significant challenge to governance and economic stability. This study investigates the efficacy of technological solutions by examining how financial regulatory technology (Fintech), within the broader context of corporate digital transformation, inhibits internal corruption. Using a panel dataset of Chinese publicly listed firms from 2013 to 2023, this study find robust evidence that the adoption of Fintech significantly curtails corruption. Crucially, this deterrent effect is amplified by the firm's digital transformation, indicating a powerful synergy between specific regulatory tools and systemic organizational change. The benefits, however, are not uniform. Heterogeneity analysis reveals that larger firms, with greater resources and more complex structures, derive more significant anti-corruption benefits from Fintech. Furthermore, the moderating effect of digital transformation is most pronounced in firms with high investment levels, which enables a more profound technological integration. These findings highlight that isolated technological solutions are insufficient; rather, a holistic digital strategy is key to enhancing corporate integrity.

Suggested Citation

  • Cheng, Jiahao, 2026. "Corporate corruption governance: the inhibitory effect of digital transformation on fintech," Finance Research Letters, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:finlet:v:91:y:2026:i:c:s1544612326000061
    DOI: 10.1016/j.frl.2026.109474
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    References listed on IDEAS

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