Fintech and corporate risk-taking: Evidence from China

Mengxuan Tang, Hou, Yang (Greg), John W. Goodell and Yang Hu

Finance Research Letters, 2024, vol. 64, issue C

Abstract: This paper explores the relationship between Fintech and corporate risk-taking using data from Chinese listed companies over the period 2011 to 2020. The results show that Fintech development advances corporate risk-taking. Further analysis demonstrates that the facilitating effect of Fintech is more pronounced among young, small, and non-state-owned firms. We further identify two potential channels through which Fintech promotes corporate risk-taking, that is, intervening in the relations of agency costs and financial constraints with corporate risk profiles. Furthermore, we find that Fintech benefits firm value through its positive effect on corporate risk-taking. Our results are robust to miscellaneous tests.

Keywords: Fintech; Corporate risk-taking; China (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324004410

DOI: 10.1016/j.frl.2024.105411

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