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Fintech and corporate risk-taking: Evidence from China

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

Abstract

This paper explores the relationship between Fintech and corporate risk-taking using data from Chinese listed companies over the period 2011 to 2020. The results show that Fintech development advances corporate risk-taking. Further analysis demonstrates that the facilitating effect of Fintech is more pronounced among young, small, and non-state-owned firms. We further identify two potential channels through which Fintech promotes corporate risk-taking, that is, intervening in the relations of agency costs and financial constraints with corporate risk profiles. Furthermore, we find that Fintech benefits firm value through its positive effect on corporate risk-taking. Our results are robust to miscellaneous tests.

Suggested Citation

  • Tang, Mengxuan & Hou, Yang (Greg) & Goodell, John W. & Hu, Yang, 2024. "Fintech and corporate risk-taking: Evidence from China," Finance Research Letters, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324004410
    DOI: 10.1016/j.frl.2024.105411
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    References listed on IDEAS

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