The impact of integrating technology and finance on firm entry: Evidence from China's FinTech pilot policy

Yuxin Liu and Wenfei Liu

Finance Research Letters, 2024, vol. 70, issue C

Abstract: This study investigates the effects of technology-finance integration on firm entry across industries in China. Based on a comprehensive dataset from the State Administration for Industry and Commerce covering 2002–2020, we construct a quasi-natural experiment design using the 2011 FinTech pilot policy. On average, the policy impedes new firm entry by raising market barriers and increasing competition. However, a nuanced industry-specific effect is observed, with the policy promoting entry in strategic emerging, technology-intensive, and high-tech sectors, while deterring entry in others. These findings help understand how technological innovation and financial policies interact to shape industrial dynamics and entrepreneurial activity.

Keywords: FinTech; Firm entry; Market access threshold; Entrant transformation (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/S1544612324013291
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:70:y:2024:i:c:s1544612324013291

DOI: 10.1016/j.frl.2024.106300

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 ().