Does fintech innovation impact corporate fraud? Evidence from China

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

Finance Research Letters, 2024, vol. 67, issue PB

Abstract: This study examines the effect of fintech innovation on corporate fraud using data from Chinese listed companies. The empirical results show that fintech innovation negatively influences corporate fraud. Reducing information asymmetry and alleviating financial constraints are two plausible channels. The results of the heterogeneity tests reveal that this negative impact is more pronounced for firms with high internal performance pressures, poor internal governance, and lenient external regulatory environments. Moreover, we analyze the relationship between fintech innovation and different types of fraud and confirm that fintech significantly inhibits disclosure and operational fraud.

Keywords: Fintech innovation; Corporate fraud; Corporate governance; China (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pb:s1544612324009474

DOI: 10.1016/j.frl.2024.105917

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