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Fintech development and corporate financial policy: Evidence from corporate financing and investment

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  • Tang, Mengxuan
  • Hu, Yang
  • Hou, Yang (Greg)
  • Oxley, Les
  • Goodell, John W.

Abstract

This study examines the nexus between fintech development and corporate financial policy, with a particular focus on the role of corporate financing and investment in shaping these policies. Through the analysis of data from Chinese A-share listed firms, we find that fintech development increases investment and financing in firms. Mechanism analyses show that the reduction of information asymmetry and the improvement of corporate governance represent two plausible channels through which fintech development affects corporate financing and investment. Furthermore, the effects of fintech on corporate financial policy are more pronounced among non-state-owned firms or firms with higher financial constraints. We also provide evidence that fintech development can reduce the cost of debt and improve investment efficiency. In addition, we confirm that shareholders view the increase in financing and investment driven by fintech developments as value-enhancing.

Suggested Citation

  • Tang, Mengxuan & Hu, Yang & Hou, Yang (Greg) & Oxley, Les & Goodell, John W., 2025. "Fintech development and corporate financial policy: Evidence from corporate financing and investment," Journal of International Money and Finance, Elsevier, vol. 157(C).
    • Handle: RePEc:eee:jimfin:v:157:y:2025:i:c:s0261560625001214
    DOI: 10.1016/j.jimonfin.2025.103386
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