Do financial innovations influence bank performance? Evidence from China

IF 2.3 Q2 BUSINESS, FINANCE

Studies in Economics and Finance Pub Date : 2023-09-08 DOI:10.1108/sef-02-2022-0119

S. Corbet, Yang (Greg) Hou, Yang Hu, Les Oxley, Mengxuan Tang

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Abstract

Purpose The rapid growth of Fintech presents a growing challenge for banking institutions, particularly those with more traditional, service backgrounds. This paper aims to examine the relationship between Fintech innovation and bank performance by exploiting novel Chinese market data. Design/methodology/approach Guided by the work of Dietrich and Wanzenried (2011, 2014) and Phan et al. (2019), the authors construct a regression model to investigate the effect of Fintech innovation on the profitability of Chinese listed banks. The authors include their measures of Fintech innovation in each of their selected structures. Findings Results indicate that Fintech innovation is negatively associated with bank performance and that state-owned banks, joint-stock commercial banks and long-established banks are more negatively impacted by Fintech innovation relative to city and rural commercial banks and younger banks. Originality/value Risk tolerance levels, internal structure and efficiency and recent debt repayment performance channels are each shown to be significant, robust explanatory factors underpinning such results.

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金融创新对银行绩效有影响吗?来自中国的证据

金融科技的快速发展给银行机构带来了越来越大的挑战，尤其是那些拥有传统服务背景的银行机构。本文旨在利用新的中国市场数据来检验金融科技创新与银行绩效之间的关系。设计/方法/途径在Dietrich and Wanzenried(2011, 2014)和Phan et al.(2019)的工作指导下，作者构建了一个回归模型来研究金融科技创新对中国上市银行盈利能力的影响。作者在他们选择的每个结构中都包含了他们对金融科技创新的衡量标准。研究结果表明，金融科技创新与银行绩效呈负相关关系，国有银行、股份制商业银行和老牌银行受金融科技创新的负面影响大于城乡商业银行和年轻银行。原创性/价值风险承受水平、内部结构和效率以及最近的债务偿还绩效渠道都被证明是支撑这些结果的重要的、强有力的解释因素。

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来源期刊

Studies in Economics and Finance BUSINESS, FINANCE-

CiteScore

4.30

自引率

10.50%

发文量

期刊介绍： Topics addressed in the journal include: ■corporate finance, ■financial markets, ■money and banking, ■international finance and economics, ■investments, ■risk management, ■theory of the firm, ■competition policy, ■corporate governance.