FinTech Can Prevent the Formation of Zombie Firms
Evidence from China
Bibliographic Data
| ID | 21489210 |
|---|---|
| Authors | Jiang Jiatong (University of International Business and Economics), Yang Lu (0000-0003-2368-7856, Tsinghua University), Yin Zhentao (Institute of Finance and Banking, Chinese Academy of Social Sciences), Yin Zhen-tao (Chinese Academy of Social Sciences) |
| Year | 2024 |
| Volume | 45 |
| Issue | 1 |
| Pages | 111-133 |
| Publication date | 2024-01-02 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Social Sciences in China (JOURNAL) |
| Journal identifiers | ISSN: 0252-9203 • E-ISSN: 1940-5952 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/02529203.2024.2326742 |
| OpenAlex | W4393615504 |
| Language | EN |
| References cited | 24 |
The interplay between financial technology (FinTech) and real economy firms has garnered considerable attention. This paper explores the relationship and mechanism between FinTech and corporate zombification using the data of Chinese A-share listed firms in China from 2011 to 2021. The research findings reveal that FinTech significantly inhibits firm zombification, and FinTech breadth and depth both play a significant role in restraining firm zombification. Mechanism exploration indicates that, on the one hand, FinTech reduces friction in the financial market, inhibiting firm zombification by improving firm investment efficiency, especially alleviating under-investment. On the other side, FinTech indirectly affects the technological investment, production, and operation of firms, thereby inhibiting firm zombification by increasing their total factor productivity. Heterogeneity analysis suggests that the inhibitory effect of FinTech on corporate zombification is more pronounced for non-stateowned firms and small-sized firms, as well as those in manufacturing industries and highly competitive industries. This paper provides some novel evidence on evaluating the effect of FinTech on firms and also offers new insights for efficient governance of zombie firms
Business · China · Computer security · Economic geography · Economics · Industrial organization · Political science · Zombie · Blockchain Technology Applications and Security · Computer Science · FinTech, Crowdfunding, Digital Finance · Microfinance and Financial Inclusion
Quality Ladders and Product Cycles
Over-investment of free cash flow
Zombie Lending and Depressed Restructuring in Japan
Fintech, regulatory arbitrage, and the rise of shadow banks
Estimating Production Functions Using Inputs to Control for Unobservables
The Evolution of Fintech
Competition and Corporate Performance
| Highly cited | No |
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