ESG reactions to fintech: The role of cross-border capital flows

Xukang Liu, Chao-Qun Ma and Yi-Shuai Ren

Research in International Business and Finance, 2025, vol. 76, issue C

Abstract: The use of scientific and technological means to promote the development of green and low-carbon financial products and services is conducive to the green transformation and low-carbon sustainable development of the real economy. This study investigates the impact of Fintech on the ESG of Chinese A-share listed firms from 2015 to 2022. The findings suggest that FinTech can significantly enhance firms' ESG performance. Meanwhile, the conclusions remain robust after considering regional industry and firm characteristics, adopting GMM model to account for potential endogeneity. Moreover, cross-border capital flows strengthen the positive relationship between fintech and ESG performance. Further, the main mechanisms through which FinTech affects firms' ESG performance are R&D innovation, attention by research reports, and fund ownership. Finally, our findings provide strong evidence for the positive impact of FinTech on corporate ESG, confirm the importance of cross-border capital flows, and provide more confidence and justification to better promote FinTech development in cross-border innovation environments.

Keywords: Fintech; ESG; Cross-border flow of capital; Innovation; Fund holding proportion; Report attention (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:76:y:2025:i:c:s027553192500090x

DOI: 10.1016/j.ribaf.2025.102834

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