RegTech and regulators’ error detection activities: Evidence from China

Changyuan Xia, Yingzi Ye and Haizong Yu

Finance Research Letters, 2025, vol. 78, issue C

Abstract: Focusing on the adoption of regulatory technology (RegTech) by Shenzhen Stock Exchange, this study examined how it enhances the accuracy of the regulatory oversight process and found a significant reduction in Type I (false positive) and Type II (false negative) errors. Furthermore, improved information accessibility and reduced resource constraints facilitate these improvements. These findings provide new insights into the role of digital technology in regulatory oversight and offer broad implications for supervisory practices in financial markets.

Keywords: RegTech; Error detection; Type Ⅰ error; Type Ⅱ error; Supervisory efficiency (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325004611

DOI: 10.1016/j.frl.2025.107198

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