IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v99y2025ics1059056025001698.html
   My bibliography  Save this article

Impacts of financial technology on resource allocation efficiency: A perspective based on the distribution differences of Inter-enterprise total factor productivity

Author

Listed:
  • Li, Xiaolu
  • Yue, Zhonggang
  • Wu, Yuchuan

Abstract

This article systematically explores the impact of financial technology on resource allocation efficiency from the perspective of the distribution differences in total factor productivity among listed companies between 2002 and 2022. The research indicates that the introduction of financial technology can significantly enhance the resource allocation efficiency of enterprises. Further analysis reveals that financial technology plays an important role in improving resource allocation efficiency by promoting the breadth and depth of digital technology application. Notably, the mediating effect of the depth of digital technology application exhibits heterogeneity across different types of enterprises. For firms that are operating at a loss, the impact of the depth of digital technology application varies, suggesting that loss-making enterprises face certain challenges in leveraging digital technology to enhance resource allocation efficiency. Additionally, the mediating effect of the breadth of digital technology application also shows heterogeneity between labor-intensive and capital-intensive enterprises, indicating that there are differences in the improvement of resource allocation efficiency driven by financial technology across enterprises with different industrial characteristics.

Suggested Citation

  • Li, Xiaolu & Yue, Zhonggang & Wu, Yuchuan, 2025. "Impacts of financial technology on resource allocation efficiency: A perspective based on the distribution differences of Inter-enterprise total factor productivity," International Review of Economics & Finance, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:reveco:v:99:y:2025:i:c:s1059056025001698
    DOI: 10.1016/j.iref.2025.104006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056025001698
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2025.104006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Liu, Dongwang, 2024. "Local government competition and resource allocation efficiency," Finance Research Letters, Elsevier, vol. 60(C).
    2. Huang, Yao & Ma, Yueru & Ou, Jie & Ma, Jian, 2024. "Capital or burden? The impact of social networks on elderly care services consumption: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 94(C).
    3. Huang, Qiongyu & Xu, Chuhong & Xue, Xiaolong & Zhu, Hui, 2023. "Can digital innovation improve firm performance: Evidence from digital patents of Chinese listed firms," International Review of Financial Analysis, Elsevier, vol. 89(C).
    4. Yu, Wanqing & Gan, Yufei & Zhou, Bingjun & Dai, Jiapeng, 2024. "Revisiting the economic policy uncertainty and resource rents nexus: Moderating impact of financial sector development in BRICS," International Review of Financial Analysis, Elsevier, vol. 94(C).
    5. Zhu, Keda & Guo, Lihong, 2024. "Financial technology, inclusive finance and bank performance," Finance Research Letters, Elsevier, vol. 60(C).
    6. Gong, Min & Zeng, Yidi & Zhang, Fan, 2023. "New infrastructure, optimization of resource allocation and upgrading of industrial structure," Finance Research Letters, Elsevier, vol. 54(C).
    7. Lee, Chi-Chuan & Li, Xinrui & Yu, Chin-Hsien & Zhao, Jinsong, 2021. "Does fintech innovation improve bank efficiency? Evidence from China’s banking industry," International Review of Economics & Finance, Elsevier, vol. 74(C), pages 468-483.
    8. Yu, Binbin & Zhou, Xinru, 2023. "Urban administrative hierarchy and urban land use efficiency: Evidence from Chinese cities," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 178-195.
    9. Guo, Bingnan & Feng, Yu & Lin, Ji, 2023. "Digital inclusive finance and digital transformation of enterprises," Finance Research Letters, Elsevier, vol. 57(C).
    10. DasGupta, Ranjan, 2022. "Financial performance shortfall, ESG controversies, and ESG performance: Evidence from firms around the world," Finance Research Letters, Elsevier, vol. 46(PB).
    11. Liu, Prof Haiyue & Wang, Yile & Xue, Dr Rui & Linnenluecke, Prof Martina & Cai, Dr Cynthia Weiyi, 2022. "Green Commitment and Stock Prick Crash Risk," Finance Research Letters, Elsevier, vol. 47(PA).
    12. Chen, Zhongfei & Xie, Guanxia, 2022. "ESG disclosure and financial performance: Moderating role of ESG investors," International Review of Financial Analysis, Elsevier, vol. 83(C).
    13. Gao, Wei & Liu, Zebin, 2023. "Green credit and corporate ESG performance: Evidence from China," Finance Research Letters, Elsevier, vol. 55(PB).
    14. Li, Jiayi & Ye, Shujun & Zhang, Yujin, 2023. "How digital finance promotes technological innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PA).
    15. Paramati, Sudharshan Reddy & Mo, Di & Huang, Ruixian, 2021. "The role of financial deepening and green technology on carbon emissions: Evidence from major OECD economies," Finance Research Letters, Elsevier, vol. 41(C).
    16. Bouri, Elie & Iqbal, Najaf & Klein, Tony, 2022. "Climate policy uncertainty and the price dynamics of green and brown energy stocks," Finance Research Letters, Elsevier, vol. 47(PB).
    17. Wen, Huwei & Lee, Chien-Chiang & Zhou, Fengxiu, 2021. "Green credit policy, credit allocation efficiency and upgrade of energy-intensive enterprises," Energy Economics, Elsevier, vol. 94(C).
    18. Alatawi, Ibrahim A. & Ntim, Collins G. & Zras, Anis & Elmagrhi, Mohamed H., 2023. "CSR, financial and non-financial performance in the tourism sector: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 89(C).
    19. Lv, Chengchao & Shao, Changhua & Lee, Chien-Chiang, 2021. "Green technology innovation and financial development: Do environmental regulation and innovation output matter?," Energy Economics, Elsevier, vol. 98(C).
    20. Wang, Yang & Xiuping, Sui & Zhang, Qi, 2021. "Can fintech improve the efficiency of commercial banks? —An analysis based on big data," Research in International Business and Finance, Elsevier, vol. 55(C).
    21. Baker, H. Kent & Kumar, Satish & Goyal, Kirti & Sharma, Anuj, 2021. "International review of financial analysis: A retrospective evaluation between 1992 and 2020," International Review of Financial Analysis, Elsevier, vol. 78(C).
    22. Cheng, Yiran & Zhou, Xiaorui & Li, Yongjian, 2023. "The effect of digital transformation on real economy enterprises’ total factor productivity," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 488-501.
    23. Huang, Yao & Ma, Yueru & Yang, Shuwen & Ma, Jian, 2024. "Loneliness, children's support, and demand for socialized elderly services: Empirical findings from China," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 111-123.
    24. Yanru Li & Guanglin Sun & Qiang Gao & Changming Cheng, 2023. "Digital Financial Inclusion, Financial Efficiency and Green Innovation," Sustainability, MDPI, vol. 15(3), pages 1-13, January.
    25. Feng, Suling & Zhang, Rong & Li, Guoxiang, 2022. "Environmental decentralization, digital finance and green technology innovation," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 70-83.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Yuantian & Xu, Haoyu & Li, Huiru & Xu, Yingming, 2025. "Environmental regulation, opening up to the outside world, and regional green industry development: Policy effects and optimization strategies," Finance Research Letters, Elsevier, vol. 75(C).
    2. Wang, Hongyan & Cheng, Jiandong & Zhou, Hang, 2025. "Tax administration informatization, financial tightened regulation, and firm productivity: A quasi-natural experiment based on the "Golden Tax Phase III project"," International Review of Economics & Finance, Elsevier, vol. 98(C).
    3. Feng, Ruonan & Ma, Lu & Wu, Dan, 2025. "ESG performance and corporate innovation under the moderating effect of firm size," International Review of Economics & Finance, Elsevier, vol. 97(C).
    4. Cheng, Xuemei & Zheng, Yinglong & Tu, Yongqian, 2025. "Research on the dynamic interaction effects of litigation events, financing constraints, and the risk of corporate stock price crashes," International Review of Economics & Finance, Elsevier, vol. 99(C).
    5. Yahya, Farzan & Lee, Chien-Chiang, 2023. "Disentangling the asymmetric effect of financialization on the green output gap," Energy Economics, Elsevier, vol. 125(C).
    6. Wang, Xue & Wang, Hui & Song, Lulu & Zhang, Feiteng, 2025. "Digital inclusive finance and digital innovation in private enterprises," International Review of Economics & Finance, Elsevier, vol. 98(C).
    7. Qiao, Xiaole & He, Yang & Du, Qiang, 2025. "How does the urban digital economy drive labor allocation in China?—A perspective of factor mobility between digital and non-digital enterprises," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1159-1175.
    8. Wang, Yuanlun & Suo, Lingjuan & Li, Chunlei & Wang, Lele, 2025. "Cultural distance, innovation capability, and corporate performance," Finance Research Letters, Elsevier, vol. 77(C).
    9. Du, Jiayu & Zhu, Rui & Ye, Qiang, 2025. "Managers' overconfidence, institutional investors' shareholding, and corporate ESG performance," Finance Research Letters, Elsevier, vol. 72(C).
    10. Yang, Ping & Lv, Yanqin & Chen, Xiaodan & Lv, Juan, 2024. "Digital finance, natural resource constraints and firms' low-carbon behavior: Evidence from listed companies," Resources Policy, Elsevier, vol. 89(C).
    11. Yang, Ronghai & Li, Yuqin & Li, Yabo, 2025. "The spatial effects of digital inclusive finance and traditional finance on the income of the migrant population: A comparative analysis of 243 cities in China," International Review of Financial Analysis, Elsevier, vol. 102(C).
    12. Xie, Qichang & Wang, Dong & Bai, Qianwen, 2024. "“Cooperation” or “competition”: Digital finance enables green technology innovation—a new assessment from dynamic spatial spillover perspectives," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 587-601.
    13. Li, Meng & Wang, Zhengqi & Shu, Linhan & Gao, Haoyu, 2025. "Broadband infrastructure and enterprise digital transformation: Evidence from China," Research in International Business and Finance, Elsevier, vol. 73(PB).
    14. Wan, Siyu & Lee, Yoong Hon & Sarma, Vengadeshvaran J., 2023. "Is Fintech good for green finance? Empirical evidence from listed banks in China," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1273-1291.
    15. Wang, Wenwen, 2025. "Digital finance and firm green innovation: The role of media and executives," Finance Research Letters, Elsevier, vol. 74(C).
    16. Wu, Yanxia & Zhang, Jie, 2025. "Digital inclusive finance and rural households’ economic resilience," Finance Research Letters, Elsevier, vol. 74(C).
    17. Xuan, Siyuan & Ge, Wenfeng & Yang, Ping & Zhang, Yunfeng, 2024. "Exploring digital finance, financial regulations and carbon emission nexus: New insight from resources efficiency, industrial structure and green innovation in China," Resources Policy, Elsevier, vol. 88(C).
    18. Sun, Ze & Cai, Cen & Tan, Haoyu & Ji, Heli & Tian, Grace (Li), 2025. "Corporate ESG performance and competitive strategies from the perspective of financial markets: Strategic significance of firm size," Finance Research Letters, Elsevier, vol. 77(C).
    19. Yang, Jinxuan & Hui, Ning, 2024. "How digital finance affects the sustainability of corporate green innovation," Finance Research Letters, Elsevier, vol. 63(C).
    20. Bai, Dongbei & Hu, Jin & Irfan, Muhammad & Hu, Mingjun, 2023. "Unleashing the impact of ecological civilization pilot policies on green technology innovation: Evidence from a novel SC-DID model," Energy Economics, Elsevier, vol. 125(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:99:y:2025:i:c:s1059056025001698. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.