FinTech and Inefficient Investment in Enterprises: A Review and Outlook
Journal: Modern Economics & Management Forum DOI: 10.32629/memf.v5i6.3356
Abstract
The deep integration of finance and technology is an important driver for deepening the structural reform of the financial supply side and serving the high-quality development of the real economy. This paper first organizes and analyzes the relevant concepts of FinTech, and then reviews related research from three perspectives: corporate governance, financing constraints, and risk-taking, aiming to provide useful insights for scholars studying the "impact of FinTech on inefficient investment in enterprises". Based on a summary of existing literature, the paper suggests that future FinTech research should focus on risk regulation and sustainable development, hoping to provide references and inspiration for subsequent related studies.
Keywords
FinTech; inefficient investment; corporate governance level; financing constraints; risk-taking capacity
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[31]Barney J.Firm resources and sustained competitive advantage[J].Journal of management,1991,17(1):99-120.
[32]Qi Y, Ouyang L, Yu Y. The impact of FinTech adoption on corporate investment: Evidence from China[J]. Finance Research Letters, 2024, 67: 105929.
[33]FAZZARI S, HUBBARD R G, PETERSEN B C. Financing Constraints and Corporate Investment[J]. Brookings Papers on Economic Activity, 1988(1):141-195.
[34]Ye T, Zhou Y, Zhang Z, et al. Research on the effect of FinTech on inefficient investment: from the perspective of information effect and resource effect[J]. Finance Research Letters, 2024: 106250.
[35]Huang S. Does FinTech improve the investment efficiency of enterprises? Evidence from China’s small and medium-sized enterprises[J]. Economic Analysis and Policy, 2022, 74: 571-586.
[36]John K, Litov L, Yeung B. Corporate governance and risk‐taking[J]. The journal of finance, 2008, 63(4): 1679-1728.
[37]BROWN L, OSBORNESP. Riskand innovation[J]. Public Management Review, 2013, 15(2):186-208.
[38]Yan J, Zhu S. Can FinTech Reduce Bank Risk Exposure? — Based on Multi-Period DID Tests of Banks Establishing FinTech Subsidiaries [J]. Statistical Research, 2024, 41(05): 64-74.
[39]Lu M. Research on the Digital Transformation Path of Commercial Banks' Financial Market Business [J]. Finance and Economics, 2023, (08): 89-96.
[2]Huang J, Tao S. The Connotation of New Financial Forms Centered on FinTech: Definition, Analysis, and Evolution [J]. Contemporary Economic Management, 2022, 44(10): 80-90.
[3]Wang X, Zhou H, Cheng L. Development of FinTech in China: Index Compilation, Overall Situation, and Spatiotemporal Characteristics [J]. Contemporary Economic Science, 2023, 45(01): 46-60.
[4]Wang R, Jia W, Zhu Y. The Impact of Monetary Policy Regulation on the Development of Digital Financial Services and Its Heterogeneity Analysis [J]. Journal of Guangdong University of Finance and Economics, 2023, 38(05): 37-56.
[5]Lee I, Shin Y J. FinTech: Ecosystem, business models, investment decisions, and challenges[J]. Business horizons, 2018, 61(1): 35-46.
[6]Liu S, Zhang Y, Liang J. Research Progress on FinTech and Financial Innovation [J]. Economic Dynamics, 2021, (03): 126-144.
[7]Thakor A V. FinTech and banking: what do we know? [J]. Journal of financial intermediation, 2020, 41(1):100833.
[8]Taherdoost H. FinTech: Emerging trends and the future of finance[J]. Financial technologies and DeFi: a revisit to the digital finance revolution, 2023: 29-39.
[9]Guo F, Wang J, Wang F, et al. Measuring the Development of Digital Inclusive Finance in China: Index Compilation and Spatial Characteristics [J]. Economics (Quarterly), 2020, 19(04): 1401-1418.
[10]Shen Y, Guo P. Internet Finance, Technological Spillover, and the Total Factor Productivity of Commercial Banks [J]. Financial Research, 2015(03): 160-175.
[11]Sheng T, Fan C. FinTech, Optimal Banking Market Structure, and Credit Supply to Small and Micro Enterprises [J]. Financial Research, 2020(06): 114-132.
[12]Li C, Yan X, Song M, et al. FinTech and Enterprise Innovation: Evidence from New Third Board Listed Companies [J]. China Industrial Economy, 2020(01): 81-98.
[13]Song M, Zhou P, Si H. FinTech and Enterprise Total Factor Productivity: Perspectives of "Empowerment" and Credit Rationing [J]. China Industrial Economy, 2021, (04): 138-155.
[14]Richardson S.Over-investment of free cash flow[J].Social Science Electronic Pub1ishing, 2006, 11(2-3):159-189.
[15]Lv P, Xiong H. Can FinTech improve corporate investment efficiency? Evidence from China[J]. Research in International Business and Finance, 2022, 60: 101571.
[16]Demirgüç-Kunt A, Maksimovic V. Law, finance, and firm growth[J]. The journal of finance, 1998, 53(6): 2107-2137.
[17]Liu Y, Zheng C, Jiang P, et al. Does FinTech Help Improve the Investment Efficiency of the Real Economy? [J]. Journal of Capital University of Economics and Business, 2018, 20(06): 22-33.
[18]He Y, Mao Q. FinTech and Inefficient Investment: Structural Characteristics, Moderating Effects, and Regulatory Outcomes [J]. Journal of Soochow University (Philosophy and Social Sciences Edition), 2023, 44(02): 113-125.
[19]Ma W, Yu M, Fan R. Can the Development of Bank FinTech Reduce Corporate Debt Default Risk? [J]. Modern Finance (Journal of Tianjin University of Finance and Economics), 2024, 44(06): 73-92.
[20]Wang Y, Hao W, Haitao S. Financial Technology and Efficiency of Enterprise Investment an Empirical Study Based on China's Listed Companies[J]. Available at SSRN 4162421, 2022.
[21]Xue L, Dong J, Jiang S. Digital financial development and inefficient investment: a study based on the dual perspectives of resource and governance effects[J]. Humanities and Social Sciences Communications, 2024, 11(1): 1-10.
[22]Wei C, Guo B, Guo C. FinTech, Information Quality, and Institutional Investors' Herd Behavior [J]. Contemporary Finance, 2023, (09): 55-68.
[23]Jing X, Yu N. Does the Development of FinTech Affect Corporate Investment Efficiency? [J]. Journal of Northeast University of Finance and Economics, 2024, (04): 87-97.
[24]Sisi Xiong. Executive Equity Incentives, Overconfidence and Corporate Inefficient Investment[J]. Open Journal of Business and Management. 2019,Vol.7(1):209-228.
[25]Liu T, Wen X, Deng Y. Analysis of the Impact of Digital Finance on Corporate Investment Efficiency from the Perspective of Digital Transformation [J]. Journal of Financial Theory and Practice, 2022, 43(04): 51-58.
[26]Dong X, Yu M. Does FinTech development facilitate firms' innovation? Evidence from China[J]. International Review of Financial Analysis, 2023, 89: 102805.
[27]Zhao R, Zhang Y, Liu J. Research on FinTech and Corporate Investment Behavior—Based on the Impact Mechanism of Financing Constraints [J]. Management Review, 2021, 33(11): 312-323.
[28]Yao X. Institutional Background, Management Characteristics, and Corporate Investment Efficiency [J]. Accounting Friend, 2022, (15): 110-116.
[29]Hutchinson M, Gul F A. Investment opportunity set, corporate governance practices and firm performance[J]. Journal of corporate finance, 2004, 10(4): 595-614.
[30]Sun R, Zhang B. Can FinTech make corporate investments more efficient? A study on financing constraints and agency conflicts[J]. Economic research-Ekonomska istraživanja, 2023, 36(3).
[31]Barney J.Firm resources and sustained competitive advantage[J].Journal of management,1991,17(1):99-120.
[32]Qi Y, Ouyang L, Yu Y. The impact of FinTech adoption on corporate investment: Evidence from China[J]. Finance Research Letters, 2024, 67: 105929.
[33]FAZZARI S, HUBBARD R G, PETERSEN B C. Financing Constraints and Corporate Investment[J]. Brookings Papers on Economic Activity, 1988(1):141-195.
[34]Ye T, Zhou Y, Zhang Z, et al. Research on the effect of FinTech on inefficient investment: from the perspective of information effect and resource effect[J]. Finance Research Letters, 2024: 106250.
[35]Huang S. Does FinTech improve the investment efficiency of enterprises? Evidence from China’s small and medium-sized enterprises[J]. Economic Analysis and Policy, 2022, 74: 571-586.
[36]John K, Litov L, Yeung B. Corporate governance and risk‐taking[J]. The journal of finance, 2008, 63(4): 1679-1728.
[37]BROWN L, OSBORNESP. Riskand innovation[J]. Public Management Review, 2013, 15(2):186-208.
[38]Yan J, Zhu S. Can FinTech Reduce Bank Risk Exposure? — Based on Multi-Period DID Tests of Banks Establishing FinTech Subsidiaries [J]. Statistical Research, 2024, 41(05): 64-74.
[39]Lu M. Research on the Digital Transformation Path of Commercial Banks' Financial Market Business [J]. Finance and Economics, 2023, (08): 89-96.
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