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Fintech engagement by non-financial firms and the speed of capital structure adjustment

Author

Listed:
  • Li, Bin
  • Sun, Jiawei
  • Xu, Lei
  • Guo, Fei

Abstract

Using a sample of Chinese A-share non-financial firms from 2013 to 2022, this paper empirically examines the impact of Fintech engagement on the speed of capital structure adjustment. The results show that firms engaging in Fintech activities significantly accelerate their capital structure adjustments, particularly when leverage is below the target level. Further heterogeneity analyses reveal that this positive effect is more pronounced in regions with stricter financial regulation, in firms with stronger financial affiliations, and among high-tech firms. In terms of adjustment mode, Fintech primarily facilitates capital structure adjustment by enhancing firms' debt financing capacity. Mechanism tests indicate that Fintech alleviates financing frictions and reduces agency costs, thereby expediting dynamic capital structure adjustment. This study confirms the effectiveness of Fintech activities in non-financial firms and contributes to the literature by revealing their economic consequences.

Suggested Citation

  • Li, Bin & Sun, Jiawei & Xu, Lei & Guo, Fei, 2026. "Fintech engagement by non-financial firms and the speed of capital structure adjustment," Pacific-Basin Finance Journal, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:pacfin:v:95:y:2026:i:c:s0927538x25003488
    DOI: 10.1016/j.pacfin.2025.103011
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