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Can FinTech improve corporate investment efficiency? Evidence from China

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  • Lv, Panpan
  • Xiong, Hu

Abstract

Exploiting a large sample of Chinese listed companies and provincial panel data over the period from 2011 to 2018, this study investigates whether and how FinTech improves the investment efficiency of listed firms. We find that corporate investment efficiency is positively associated with the level of FinTech, and this relation is concentrated in areas with low urbanization rates and low marketization, indicating the inclusive nature of FinTech. Moreover, both diversified ownership of enterprises and the separation of ownership and management significantly strengthen the positive association, which reflects a complementary effect between the influence of FinTech on corporate investment efficiency and the two governance mechanisms.

Suggested Citation

  • Lv, Panpan & Xiong, Hu, 2022. "Can FinTech improve corporate investment efficiency? Evidence from China," Research in International Business and Finance, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:riibaf:v:60:y:2022:i:c:s0275531921001926
    DOI: 10.1016/j.ribaf.2021.101571
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    Cited by:

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    3. Wen, Huiyu & Fang, Jincheng & Gao, Haoyu, 2023. "How FinTech improves financial reporting quality? Evidence from earnings management," Economic Modelling, Elsevier, vol. 126(C).
    4. Gupta, Somya & Ghardallou, Wafa & Pandey, Dharen Kumar & Sahu, Ganesh P., 2022. "Artificial intelligence adoption in the insurance industry: Evidence using the technology–organization–environment framework," Research in International Business and Finance, Elsevier, vol. 63(C).
    5. Zhang, Xiumin & Zhao, Tianyu & Wang, Linhui & Dong, Zhiqing, 2022. "Does Fintech benefit financial disintermediation? Evidence based on provinces in China from 2013 to 2018," Journal of Asian Economics, Elsevier, vol. 82(C).
    6. Jinlong Lin & Xiaoxiao Chen & Guiquan Yan, 2023. "How Smart City Construction Affects Digital Inclusive Finance in China: From the Perspective of the Relationship between Government and Large Private Capital," Sustainability, MDPI, vol. 15(11), pages 1-17, June.
    7. Lei Xu & Qian Liu & Bin Li & Chen Ma, 2022. "Fintech business and firm access to bank loans," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(4), pages 4381-4421, December.

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