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Analysis of the Export Activity of Hungarian FinTech Companies

Author

Listed:
  • Péter Fáykiss

    (Magyar Nemzeti Bank)

  • Lívia Ónozó

    (Magyar Nemzeti Bank)

Abstract

In our analysis, we examine domestic FinTech SMEs by using micro-data, focusing on the export activity of companies in the Hungarian FinTech sector. Our study offers new content not only because of the range of examined enterprises, but also due to the uniqueness of the database used, as we have endeavoured to provide a deeper picture of domestic FinTech companies with the help of company data rarely used thus far. The purpose of our examination is twofold: first, based on the company characteristics that can be extracted from the annual accounts of the companies concerned, we organise the Hungarian FinTech companies into distinct groups by cluster analysis. Second, using logistic regression estimation on the crosssectional data, we identify the most important factors affecting the export activity of domestic FinTech companies. Our results have shown that FinTech companies active in Hungary can be divided into three distinct clusters based on the company characteristics involved: export share, headcount and various financial indicators. Regarding the three clusters, medium-sized companies make up half of the cluster in the group of FinTech companies with the highest export share, and the group is characterised by high value added relative to balance sheet totals. Based on our logistic regression estimation, among the FinTech companies we examined, a significantly positive effect on the probability of exporting can be identified in the case of value added, headcount and foreign ownership.

Suggested Citation

  • Péter Fáykiss & Lívia Ónozó, 2020. "Analysis of the Export Activity of Hungarian FinTech Companies," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 19(4), pages 60-82.
    • Handle: RePEc:mnb:finrev:v:19:y:2020:i:4:p:60-82
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    References listed on IDEAS

    as
    1. Buchak, Greg & Matvos, Gregor & Piskorski, Tomasz & Seru, Amit, 2018. "Fintech, regulatory arbitrage, and the rise of shadow banks," Journal of Financial Economics, Elsevier, vol. 130(3), pages 453-483.
    2. Péter Fáykiss & Dániel Papp & Péter Sajtos & Ágnes Tõrös, 2018. "Regulatory Tools to Encourage FinTech Innovations: The Innovation Hub and Regulatory Sandbox in International Practice," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 17(2), pages 43-67.
    3. Lee, In & Shin, Yong Jae, 2018. "Fintech: Ecosystem, business models, investment decisions, and challenges," Business Horizons, Elsevier, vol. 61(1), pages 35-46.
    4. Anagnostopoulos, Ioannis, 2018. "Fintech and regtech: Impact on regulators and banks," Journal of Economics and Business, Elsevier, vol. 100(C), pages 7-25.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    FinTech; export; cluster analysis;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G3 - Financial Economics - - Corporate Finance and Governance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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