FinTech and firm’s cash holdings: evidence from China

IF 2.1 Q2 INFORMATION SCIENCE & LIBRARY SCIENCE

Digital Policy Regulation and Governance Pub Date : 2023-07-13 DOI:10.1108/dprg-02-2023-0029

I. Ullah, A. Zeb

{"title":"FinTech and firm’s cash holdings: evidence from China","authors":"I. Ullah, A. Zeb","doi":"10.1108/dprg-02-2023-0029","DOIUrl":null,"url":null,"abstract":"\nPurpose\nThis study aims to empirically explore the nexus between FinTech and a firm’s cash holdings.\n\n\nDesign/methodology/approach\nA panel data regression analysis is conducted on a sample of A-listed firms registered on the Shenzhen and Shanghai Stock Exchanges from 2011 to 2019. To address simultaneity issues in the study, the authors use various endogeneity tests, including lag of independent variables, generalized method of moments and two-stage least squares estimation.\n\n\nFindings\nResults reveal that FinTech has a significantly negative effect on a firm’s cash holdings, suggesting that FinTech development improves cash management by alleviating agency costs and reducing financial constraints. The findings remain consistent across different FinTech measures and alternative cash holding proxies, demonstrating that FinTech serves as a corporate governance mechanism.\n\n\nPractical implications\nThe findings suggest that FinTech disciplines corporate managers and alleviates agency problems regarding cash holdings.\n\n\nOriginality/value\nThis study suggests that FinTech determines a firm’s cash holdings.\n","PeriodicalId":56357,"journal":{"name":"Digital Policy Regulation and Governance","volume":null,"pages":null},"PeriodicalIF":2.1000,"publicationDate":"2023-07-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Digital Policy Regulation and Governance","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/dprg-02-2023-0029","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"INFORMATION SCIENCE & LIBRARY SCIENCE","Score":null,"Total":0}

引用次数: 0

Abstract

Purpose This study aims to empirically explore the nexus between FinTech and a firm’s cash holdings. Design/methodology/approach A panel data regression analysis is conducted on a sample of A-listed firms registered on the Shenzhen and Shanghai Stock Exchanges from 2011 to 2019. To address simultaneity issues in the study, the authors use various endogeneity tests, including lag of independent variables, generalized method of moments and two-stage least squares estimation. Findings Results reveal that FinTech has a significantly negative effect on a firm’s cash holdings, suggesting that FinTech development improves cash management by alleviating agency costs and reducing financial constraints. The findings remain consistent across different FinTech measures and alternative cash holding proxies, demonstrating that FinTech serves as a corporate governance mechanism. Practical implications The findings suggest that FinTech disciplines corporate managers and alleviates agency problems regarding cash holdings. Originality/value This study suggests that FinTech determines a firm’s cash holdings.

查看原文本刊更多论文

金融科技和公司现金持有量:来自中国的证据

本研究旨在实证探讨金融科技与企业现金持有量之间的关系。设计/方法/方法以2011 - 2019年在深圳和上海证券交易所注册的a类上市公司为样本，进行面板数据回归分析。为了解决研究中的同时性问题，作者使用了各种内生性检验，包括自变量滞后、广义矩量法和两阶段最小二乘估计。研究结果显示，金融科技对企业的现金持有量有显著的负面影响，这表明金融科技的发展通过缓解代理成本和减少财务约束来改善现金管理。研究结果在不同的金融科技指标和替代现金持有代理中保持一致，表明金融科技可以作为公司治理机制。研究结果表明，金融科技约束了企业管理者，缓解了现金持有的代理问题。原创性/价值本研究表明，金融科技决定了公司的现金持有量。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Digital Policy Regulation and Governance INFORMATION SCIENCE & LIBRARY SCIENCE-

CiteScore

3.90

自引率

0.00%

发文量

期刊介绍： Emerald holds journals from the current and previous year. We hold all older back volumes and can supply high quality reprints for most volumes that were previously out-of-print. Complete list of titles we can supply from this publisher Publisher''s web page and subscription information