{"title":"Unintended consequences: Examining the effects of government digital regulation on corporate fintech innovation in China","authors":"Weijie Tan , Qiuyu Tang , Wanting Sun , Xuanyu Du","doi":"10.1016/j.ememar.2024.101221","DOIUrl":null,"url":null,"abstract":"<div><div>In the financial sector, government digital regulation significantly influences the development of financial technology (fintech), yet it has not been sufficiently studied. This research leverages patent text data from A-share listed companies in China from 2011 to 2021 and digital administrative penalty information from various cities, utilizing machine learning techniques to measure enterprise fintech innovation and city-level digital regulation indicators. Grounded in institutional theory, this study investigates the impact of government digital regulation on enterprise fintech innovation and its underlying mechanisms. The findings suggest that government digital regulation impedes enterprise fintech innovation, as it heightens the overall external environmental risks and increases internal operational burdens for enterprises. Heterogeneity analysis shows that this inhibitory effect is more pronounced in private enterprises, firms with stronger financial stability, and high-tech companies. Furthermore, significant differences exist across various dimensions of digital regulation and fintech innovation. Nonetheless, the study also finds that the synergistic development between government digital regulation and enterprise fintech innovation can produce positive governance outcomes, thereby fostering fintech innovation.</div></div>","PeriodicalId":47886,"journal":{"name":"Emerging Markets Review","volume":"64 ","pages":"Article 101221"},"PeriodicalIF":5.6000,"publicationDate":"2024-11-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Emerging Markets Review","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S156601412400116X","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
In the financial sector, government digital regulation significantly influences the development of financial technology (fintech), yet it has not been sufficiently studied. This research leverages patent text data from A-share listed companies in China from 2011 to 2021 and digital administrative penalty information from various cities, utilizing machine learning techniques to measure enterprise fintech innovation and city-level digital regulation indicators. Grounded in institutional theory, this study investigates the impact of government digital regulation on enterprise fintech innovation and its underlying mechanisms. The findings suggest that government digital regulation impedes enterprise fintech innovation, as it heightens the overall external environmental risks and increases internal operational burdens for enterprises. Heterogeneity analysis shows that this inhibitory effect is more pronounced in private enterprises, firms with stronger financial stability, and high-tech companies. Furthermore, significant differences exist across various dimensions of digital regulation and fintech innovation. Nonetheless, the study also finds that the synergistic development between government digital regulation and enterprise fintech innovation can produce positive governance outcomes, thereby fostering fintech innovation.
期刊介绍：
The intent of the editors is to consolidate Emerging Markets Review as the premier vehicle for publishing high impact empirical and theoretical studies in emerging markets finance. Preference will be given to comparative studies that take global and regional perspectives, detailed single country studies that address critical policy issues and have significant global and regional implications, and papers that address the interactions of national and international financial architecture. We especially welcome papers that take institutional as well as financial perspectives.
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
