Does product market competition affect the adoption of FinTech by non-financial firms?

Liu Hong, Ehsan Nikbakht and Tianpeng Zhou

Finance Research Letters, 2023, vol. 54, issue C

Abstract: In this paper, we construct a new measure of FinTech adoption based on textual analysis and examine how product market competition affects FinTech adoption at the firm level. We document that firms operating in more competitive environments have a higher incentive to adopt FinTech, especially when they produce similar products as their competitors. We also find that the positive relation between competition and FinTech adoption is less pronounced for financially constrained firms, suggesting that firms’ ability to adopt FinTech is restricted by their access to external financing.

Keywords: FinTech adoption; Competition; Product similarity; Financial constraints (search for similar items in EconPapers)
JEL-codes: D4 G30 G39 O33 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:54:y:2023:i:c:s154461232300096x

DOI: 10.1016/j.frl.2023.103730

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