How does FinTech development drive corporate innovation? Fresh evidence from the perspective of financial supply

By constructing a city-level financial-technology (FinTech) development dataset, this study examines the impact of FinTech on corporate-innovation behavior from a financial-supply perspective. The results reveal that FinTech promotes corporate innovation by reducing corporate-financing constraints...

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Main Authors: Chi-Chuan Lee, Lei Fang, Jinsong Zhao, Chin-Hsien Yu, Jian Zhang
Format: Article
Language:English
Published: Vilnius Gediminas Technical University 2024-11-01
Series:Technological and Economic Development of Economy
Subjects:
Online Access:https://jeelm.vgtu.lt/index.php/TEDE/article/view/22192
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author Chi-Chuan Lee
Lei Fang
Jinsong Zhao
Chin-Hsien Yu
Jian Zhang
author_facet Chi-Chuan Lee
Lei Fang
Jinsong Zhao
Chin-Hsien Yu
Jian Zhang
author_sort Chi-Chuan Lee
collection DOAJ
description By constructing a city-level financial-technology (FinTech) development dataset, this study examines the impact of FinTech on corporate-innovation behavior from a financial-supply perspective. The results reveal that FinTech promotes corporate innovation by reducing corporate-financing constraints and financing costs, alleviating information asymmetry, and expanding financing channels. This promotion effect is more pronounced for private, small, and young firms, firms with fewer fixed assets, and those located in low-regulation intensity areas. Moreover, credit-based FinTech companies have a greater impact on business innovation. In addition, bank deregulation and increased bank competition crowd out the financial supply of FinTech for innovation financing. Knowledge of these impacts can help corporate managers, governments, and financial regulators to formulate more effective development strategies to promote corporate innovation. First published online 15 November 2024
format Article
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institution Kabale University
issn 2029-4913
2029-4921
language English
publishDate 2024-11-01
publisher Vilnius Gediminas Technical University
record_format Article
series Technological and Economic Development of Economy
spelling doaj-art-86f828bac8a842a7afd7235c13a3195b2024-11-15T16:29:00ZengVilnius Gediminas Technical UniversityTechnological and Economic Development of Economy2029-49132029-49212024-11-0110.3846/tede.2024.22192How does FinTech development drive corporate innovation? Fresh evidence from the perspective of financial supplyChi-Chuan Lee0Lei Fang1Jinsong Zhao2Chin-Hsien Yu3Jian Zhang4School of Public Administration, Southwestern University of Finance and Economics, Chengdu, ChinaSchool of Statistics, Southwestern University of Finance and Economics, Chengdu, ChinaSchool of Economics, Southwestern University of Finance and Economics, Chengdu, ChinaSchool of Public Administration, Southwestern University of Finance and Economics, Chengdu, ChinaSchool of Economics, Southwestern University of Finance and Economics, Chengdu, China By constructing a city-level financial-technology (FinTech) development dataset, this study examines the impact of FinTech on corporate-innovation behavior from a financial-supply perspective. The results reveal that FinTech promotes corporate innovation by reducing corporate-financing constraints and financing costs, alleviating information asymmetry, and expanding financing channels. This promotion effect is more pronounced for private, small, and young firms, firms with fewer fixed assets, and those located in low-regulation intensity areas. Moreover, credit-based FinTech companies have a greater impact on business innovation. In addition, bank deregulation and increased bank competition crowd out the financial supply of FinTech for innovation financing. Knowledge of these impacts can help corporate managers, governments, and financial regulators to formulate more effective development strategies to promote corporate innovation. First published online 15 November 2024 https://jeelm.vgtu.lt/index.php/TEDE/article/view/22192FinTechfinancial supplycorporate innovationbank competition
spellingShingle Chi-Chuan Lee
Lei Fang
Jinsong Zhao
Chin-Hsien Yu
Jian Zhang
How does FinTech development drive corporate innovation? Fresh evidence from the perspective of financial supply
Technological and Economic Development of Economy
FinTech
financial supply
corporate innovation
bank competition
title How does FinTech development drive corporate innovation? Fresh evidence from the perspective of financial supply
title_full How does FinTech development drive corporate innovation? Fresh evidence from the perspective of financial supply
title_fullStr How does FinTech development drive corporate innovation? Fresh evidence from the perspective of financial supply
title_full_unstemmed How does FinTech development drive corporate innovation? Fresh evidence from the perspective of financial supply
title_short How does FinTech development drive corporate innovation? Fresh evidence from the perspective of financial supply
title_sort how does fintech development drive corporate innovation fresh evidence from the perspective of financial supply
topic FinTech
financial supply
corporate innovation
bank competition
url https://jeelm.vgtu.lt/index.php/TEDE/article/view/22192
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