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FinTech and corporate pollution reduction

Author

Listed:
  • Lu, Jian
  • Wang, Congcong
  • Xie, Tangkun
  • Zhang, Xueying

Abstract

FinTech innovations generate technological dividends that enable novel approaches to corporate green governance, enhancing emission control capabilities and serving as a key driver for pollution reduction. Analyzing A-share listed firms' annual reports (2015–2022) through dependency parsing MD&A disclosures, this paper distinguishes action-oriented statements from predictive content and constructs FinTech adoption metrics. By systematically constructing FinTech adoption metrics, we empirically investigate how corporate utilization of financial technologies impacts environmental pollutant outputs. Our findings demonstrate that FinTech implementation levels, measured by action-oriented disclosure intensity, exert statistically significant adverse effects on industrial emissions. Mechanism analysis reveals that FinTech facilitates the integration of green technologies into operational processes while optimizing environmental monitoring systems. These findings position FinTech as a market-based pollution control tool and a source of positive environmental externalities. Policymakers should establish adaptive regulatory frameworks to channel FinTech dividends toward sustainable development goals.

Suggested Citation

  • Lu, Jian & Wang, Congcong & Xie, Tangkun & Zhang, Xueying, 2025. "FinTech and corporate pollution reduction," Research in International Business and Finance, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:riibaf:v:80:y:2025:i:c:s0275531925003666
    DOI: 10.1016/j.ribaf.2025.103110
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