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The impact of fintech on corporate risk-taking

Author

Listed:
  • Liang, Tian
  • Chen, Zhanguang
  • Zhou, Chaobo
  • Lu, Haoyang

Abstract

Drawing upon panel data from A-share listed firms in Shanghai and Shenzhen between 2011 and 2023, this paper explores how financial technology (fintech) influences corporate risk-taking and examines how economic policy uncertainty and managerial competence moderate this relationship. Empirical results indicate that fintech significantly enhances corporate risk-taking by triggering an “opportunity expectation effect,” meaning firms become more inclined to pursue growth opportunities. Fintech indirectly fosters corporate risk-taking through mitigating financing barriers and decreasing information gaps, thereby reinforcing the mechanism behind the opportunity expectation effect. Further analysis indicates that economic policy uncertainty negatively moderates the fintech–risk-taking relationship, whereas managerial capability serves as a positive moderator. Additionally, the heterogeneity analysis demonstrates that fintech's impact on encouraging risk-taking is particularly pronounced among enterprises located in China's eastern regions, private firms, and companies in low-tech sectors.

Suggested Citation

  • Liang, Tian & Chen, Zhanguang & Zhou, Chaobo & Lu, Haoyang, 2025. "The impact of fintech on corporate risk-taking," International Review of Economics & Finance, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025007622
    DOI: 10.1016/j.iref.2025.104599
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