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Can financial technology enhance corporate investment efficiency? Evidence from the COVID-19 pandemic

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  • Hu, Lei
  • Zhu, Ziyan
  • Dong, Liang

Abstract

We quantify the FinTech development level by textual analysis. The results show that the intensification of the COVID epidemic adversely affects corporate investment efficiency, but the development of FinTech mitigates such a negative effect by alleviating financing constraints.

Suggested Citation

  • Hu, Lei & Zhu, Ziyan & Dong, Liang, 2024. "Can financial technology enhance corporate investment efficiency? Evidence from the COVID-19 pandemic," Economics Letters, Elsevier, vol. 243(C).
    • Handle: RePEc:eee:ecolet:v:243:y:2024:i:c:s0165176524003951
    DOI: 10.1016/j.econlet.2024.111911
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    References listed on IDEAS

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    1. Andreas Fuster & Matthew Plosser & Philipp Schnabl & James Vickery, 2019. "The Role of Technology in Mortgage Lending," The Review of Financial Studies, Society for Financial Studies, vol. 32(5), pages 1854-1899.
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    4. Itay Goldstein & Wei Jiang & G Andrew Karolyi, 2019. "To FinTech and Beyond," The Review of Financial Studies, Society for Financial Studies, vol. 32(5), pages 1647-1661.
    5. Ho, Tuan & Kim, Kirak & Li, Yang & Xu, Fangming, 2023. "Does real flexibility help firms navigate the COVID-19 pandemic?," The British Accounting Review, Elsevier, vol. 55(4).
    6. Taylor, Daniel, 2022. "Did diversified and less risky banks perform better amid the pandemic?," Economics Letters, Elsevier, vol. 211(C).
    7. Aggarwal, Shobhit & Nawn, Samarpan & Dugar, Amish, 2021. "What caused global stock market meltdown during the COVID pandemic–Lockdown stringency or investor panic?," Finance Research Letters, Elsevier, vol. 38(C).
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    More about this item

    Keywords

    Financial technology; COVID-19 pandemic; Investment efficiency; Financing constraint;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General

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