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Impact of Fintech Adoption on Corporate Financial Structure and Performance: A Cross-Country Study of NBFCs

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  • Thepdawala, Muhammad Mubeen

Abstract

PurposeThis study investigates the impact of FinTech adoption on the financial performance and structure of non-banking finance companies (NBFCs) across multiple economies, ranging from emerging to developed markets. Based upon the Technology Acceptance Model (TAM), Innovation Diffusion Theory (IDT), and Resource-Based View (RBV), the research examines whether FinTech adoption enhances profitability (measured by net profits) or optimizes the financial structure (measured by debt-to-equity ratio).Design/Methodology/ApproachConducted multivariate analysis using the sample of 120 NBFCs from 12 countries from emerging and developed economies, incorporating FinTech adoption rate, market capitalization, and effective tax rate as the predictors.FindingsThe results uncover that FinTech adoption does positively impact performance and significantly optimizes the capital structure by lowering the reliance on debt financing. In contrast, capitalization and effective tax rates don’t have any significant impact.Implications/Originality/ValueThe finding underscores the strategic importance of technological effectiveness in organizational resource contribution and competitive advantage in the market. This research contributes to theoretical advancements by integrating TAM, IDT, and RBV and provides insights for stakeholders, policy makers, and financial institutions aiming to enhance the performance and optimize the capital structure of NBFCs through FinTech integration and innovations. &

Suggested Citation

  • Thepdawala, Muhammad Mubeen, 2025. "Impact of Fintech Adoption on Corporate Financial Structure and Performance: A Cross-Country Study of NBFCs," Sustainable Business and Society in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 7(2), pages 263-274, June.
    • Handle: RePEc:src:sbseec:v:7:y:2025:i:2:p:263-274
    DOI: http://doi.org/10.26710/sbsee.v7i2.3381
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