Fintech and R&D financing: Evidence from China

Chenguang Fan (), Seongho Bae () and Yu Liu ()
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Chenguang Fan: Kyungpook National University, https://orcid.org/0009-0003-3723-7060
Seongho Bae: Kyungpook National University, https://orcid.org/0000-0002-0676-0815
Yu Liu: Kyungpook National University, https://orcid.org/0009-0004-2663-026X

East Asian Economic Review, 2024, vol. 28, issue 3, 315-357

Abstract: The rapid development of China’s digital economy has enabled China to lead the world in financial technology (FinTech). In this context, it is imperative to study the impact of FinTech at the macro level on the sources of R&D financing for micro-enterprises. Using the data of A-share listed companies on the main boards of China’s Shanghai and Shenzhen cities and the municipal-level FinTech development index from 2011 to 2020, this paper conducts an empirical test by applying the system generalized method of moments estimation (system GMM). Fintech facilitates firms’ external financing of R&D. There is significant heterogeneity across different types of firms, with fintech facilitating R&D financing more strongly for young and non-state firms. This study not only complements the literature on the impact of fintech on R&D financing but also has essential practical guidance significance, which can provide valuable guidance and assistance to different types of enterprises in their R&D financing decision-making process.

Keywords: Fintech; R&D financing; GMM (search for similar items in EconPapers)
JEL-codes: D21 G32 M41 (search for similar items in EconPapers)
Date: 2024
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