FinTech development and corporate green total factor productivity

Donghai Li and Peng Wang

International Review of Financial Analysis, 2025, vol. 107, issue C

Abstract: This study investigates the unexplored nexus between financial technology (FinTech) development and green total factor productivity (GTFP) in corporate settings, bridging a significant research gap on how digital financial innovations influence environmental efficiency. Despite extensive literature on FinTech's economic impacts or GTFP determinants, their intersection remains insufficiently examined, especially in terms of the mechanisms by which FinTech transforms sustainable productivity. Using panel data from Chinese listed firms spanning 2010–2021, this study establishes causal relationships using robust econometric approaches such as instrumental variables, propensity score matching, and Heckman selection models. Findings reveal that FinTech significantly improves GTFP through dual pathways, namely, alleviating financing constraints and fostering technological innovation, with these relationships varying depending on ownership structures and regional contexts. State-owned enterprises demonstrate stronger FinTech–GTFP relationships than non-state counterparts, and eastern regions exhibit more pronounced effects than central or western regions. These findings emphasize how FinTech restructures resource allocation and innovation processes to advance corporate sustainability, offering critical implications for policymakers seeking to balance financial innovation with environmental goals in the pursuit of sustainable economic development.

Keywords: FinTech; Green total factor productivity; Financing constraints; Technological innovation; Sustainable productivity (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:107:y:2025:i:c:s1057521925006544

DOI: 10.1016/j.irfa.2025.104567

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