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

Author

Listed:
  • Ye, Tifang
  • Zhou, Yanli
  • Zhang, Zhigang
  • Ge, Xiangyu
  • Yang, Xingxing

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.

Suggested Citation

  • Ye, Tifang & Zhou, Yanli & Zhang, Zhigang & Ge, Xiangyu & Yang, Xingxing, 2024. "Research on the effect of fintech on inefficient investment: From the perspective of information effect and resource effect," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012790
    DOI: 10.1016/j.frl.2024.106250
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    Keywords

    Fintech; Underinvestment; Information effect; Resource effect;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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