How monetary policies and fintech shape the peer effect of corporate financialization: Evidence from China's listed companies

Yongqi Feng, Haolin Zhang and Lei Zhang

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

Abstract: As a prominent manifestation of the deep integration between real-sector enterprises and financial markets, corporate financialization has developed increasingly complex behavioral dynamics, particularly amid the rapid advancement of financial technology (FinTech). This study investigates its influence on the peer effects of corporate financialization among Chinese A-share listed companies from 2013 to 2022. Using various regression models, we find that firms tend to imitate the financial investment behaviors of their peers within the same industry or geographic region (i.e., the “peer effect”). Additionally, when imitating the investment behavior of their industrial or regional peers, companies are more likely to follow high-quality peers characterized by low financing constraints or high-capacity-utilization rates. Furthermore, FinTech plays a moderating role in the peer effects of corporate financialization, with effects that may either enhance or weaken peer influence. Specifically, under expansionary monetary policy, a higher level of FinTech development tends to weaken the peer effect. Conversely, under contractionary monetary policy, greater FinTech development tends to amplify the peer effect.

Keywords: Corporate financialization; Peer effect; FinTech; Monetary policy; Corporate investment (search for similar items in EconPapers)
JEL-codes: D91 G11 G32 O33 (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:s1057521925006003

DOI: 10.1016/j.irfa.2025.104513

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