1. Fintech business and corporate social responsibility practices.
- Author
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Li, Bin, Guo, Fei, Xu, Lei, and Meng, Siqi
- Subjects
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SOCIAL responsibility of business , *DIGITAL technology , *FINANCIAL technology , *INTERNAL auditing , *AGENCY costs , *CAPITAL market , *BANK loans - Abstract
Through a proprietary dataset of listed firms on the Shanghai and Shenzhen Stock Exchanges, we establish a positive link between firms' financial technology (Fintech) business and their corporate social responsibility (CSR) practices. Such a link can be more pronounced among firms of stronger political connections, lower agency costs, and better internal control. Enhanced supply of bank loans, internal capital market, public scrutiny, and firms' strategic differences are underlying the link. Fintech business may also effectively curb firms' corporate social irresponsibility (CSI) behaviour. Fintech business may have become a strategic endeavor to sustain long-term economic growth in the digital age. • Fintech business positively contributes to firm CSR practices. • The impact is strengthened by political connections, lowered agency costs, and internal control. • Bank loans, internal capital market, public scrutiny, and strategic differences are underlying elements. • Fintech business also curbs corporate social irresponsibility behaviour. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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