Fintech governance and performance: Implications for banking and financial stability

Greta Benedetta Ferilli, Yener Altunbas, Valeria Stefanelli, Egidio Palmieri and Vittorio Boscia

Research in International Business and Finance, 2024, vol. 70, issue PB

Abstract: This paper explores the relationship between governance and performance of Fintech firms recalling Resource-Based View and Upper Echelons Theory principles. Using a pooling model, we identify key characteristics of Chief Executive Officers (CEOs) and Boards of Directors (BoDs) that can improve profitability and lower risk in Fintech firms. The findings highlight that an older BoD increases risk and profitability, while a larger BoD reduces returns and risk. Furthermore, having a female CEO impacts the likelihood of default, while CEOs with expertise in management or law are associated with lower profitability. The study provides empirical evidence that governance structures can decrease Fintech risk and increase financial stability, addressing a previously overlooked research area. Informed decisions by banks about Fintech partnerships, based on enhanced governance, can mitigate risks, and improve the overall stability of the financial system.

Keywords: Banking Industry; Fintech; Governance; Performance; Financial stability (search for similar items in EconPapers)
JEL-codes: G20 G21 G3 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:70:y:2024:i:pb:s0275531924001429

DOI: 10.1016/j.ribaf.2024.102349

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