Fintech development and corporate financial policy: Evidence from corporate financing and investment

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

Journal of International Money and Finance, 2025, vol. 157, issue C

Abstract: This study examines the nexus between fintech development and corporate financial policy, with a particular focus on the role of corporate financing and investment in shaping these policies. Through the analysis of data from Chinese A-share listed firms, we find that fintech development increases investment and financing in firms. Mechanism analyses show that the reduction of information asymmetry and the improvement of corporate governance represent two plausible channels through which fintech development affects corporate financing and investment. Furthermore, the effects of fintech on corporate financial policy are more pronounced among non-state-owned firms or firms with higher financial constraints. We also provide evidence that fintech development can reduce the cost of debt and improve investment efficiency. In addition, we confirm that shareholders view the increase in financing and investment driven by fintech developments as value-enhancing.

Keywords: Fintech development; Corporate investment; External financing; Information asymmetry (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0261560625001214
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:157:y:2025:i:c:s0261560625001214

DOI: 10.1016/j.jimonfin.2025.103386

Access Statistics for this article

Journal of International Money and Finance is currently edited by J. R. Lothian

More articles in Journal of International Money and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().