Fintech development and corporate credit risk: Evidence from an emerging market

Changchun Tan, Lingyu Mo, Xiaomeng Wu and Peng Zhou

International Review of Financial Analysis, 2024, vol. 92, issue C

Abstract: This paper analyzes the impact of fintech development on the credit risk of non-financial firms. Using the city-level fintech development index constructed based on data from Ant Finance Service Group, we find that: (1) non-financial firms in cities with better fintech services have lower credit risk; (2) two channels identified are financial constraints and corporate investment efficiency; (3) the role of fintech development in reducing corporate credit risk are more pronounced for non-state-owned firms, small and medium-sized firms, firms in regions with a lower level of marketization, and firms experiencing economic contraction. Our research provides implications for the development of fintech in an emerging market.

Keywords: Fintech development; Credit risk; Non-financial firms; Financial constraints; Corporate investment efficiency (search for similar items in EconPapers)
JEL-codes: G21 G32 G33 O33 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:92:y:2024:i:c:s1057521924000164

DOI: 10.1016/j.irfa.2024.103084

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