Research on the effect of fintech on inefficient investment: From the perspective of information effect and resource effect

Tifang Ye, Yanli Zhou, Zhigang Zhang, Xiangyu Ge and Xingxing Yang

Finance Research Letters, 2024, vol. 69, issue PB

Abstract: This paper investigates the impact of fintech on investment efficiency. Based on the data of A-share listed enterprises from 2013 to 2021, the empirical results indicate that: (i) Fintech can significantly reduce underinvestment in enterprises. (ii) Easing financing constraints and enhancing the quality of disclosure serve as potential mechanisms for this effect. (iii) Heterogeneous analysis reveals that the impact of fintech on underinvestment is more pronounced for private enterprises, those disclosing ESG information, and enterprises located in 5 G and big data pilot cities, as well as in regions with higher levels of economic and educational integration. These findings have important implications for corporate managers, investors, and policymakers.

Keywords: Fintech; Underinvestment; Information effect; Resource effect (search for similar items in EconPapers)
JEL-codes: D24 E32 G30 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612324012790
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:finlet:v:69:y:2024:i:pb:s1544612324012790

DOI: 10.1016/j.frl.2024.106250

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().