Analysis Of The Impact Of Fintech On Business Growth And Its Mechanism

Fintech is a product of the deep integration of emerging technologies and finance,and is becoming an important engine for driving financial change as technology development becomes increasingly innovative,an important way to allocate financial resources for social production activities,and a powerful driving force for the development of the financial sector and the real economy.To achieve high-quality development of the real economy,it is necessary to deeply integrate fintech with the real economy,and an in-depth understanding of the impact and mechanisms of growth of fintech companies becomes necessary and urgent.This paper selects the number of fintech companies as the fintech development index for each prefecture-level city and conducts an empirical test with a sample of Chinese A-share listed companies from 2011 to 2020.The findings show that(1)fintech can drive enterprise growth;(2)the heterogeneity test reveals that fintech is universal and has a positive impact on the growth of all enterprises,but the extent to which enterprises of different ownership nature,different asset sizes and different regions are affected by fintech varies.Specifically,the growth of its private enterprises,light-asset enterprises and enterprises in the eastern region are more strongly promoted by fintech;(3)from the internal perspective of enterprises,intermediary channels through which fintech development promotes enterprise growth include suppressing financing constraints and improving R&D innovation;(4)from the external analysis of enterprises,fintech essentially belongs to the financial category,and will indeed influence the structural reform of the financial supply side,intensify the competition among traditional The moderating effect test proves that bank competition will further amplify the role of fintech in promoting firm growth.The results of the study help to understand how fintech can better serve the real economy by facilitating the flow of factors and improving the efficiency of the internal circulation in the context of the new development strategy,which is dominated by a large domestic circulation and promoted by both domestic and international circulation.Therefore,in the new era of China’s economic development,it is important to continue to promote the development of fintech and explore concrete paths for financial services to enhance the quality and efficiency of the real economy,thereby promoting China’s economic development towards high quality.The marginal contribution of this paper is threefold: first,it examines the impact of fintech on firm growth and tests whether the diffusion of fintech truly serves the real economy.Adopting a new perspective for empirical evidence,we analyse the channels through which fintech acts on real enterprises through a mediating effects model,verifying that fintech reduces financing constraints and increases corporate R&D innovation to drive growth from within the enterprise,contributing to the analysis of the allocation and circulation mechanisms of capital factors in the new development landscape.The external level of enterprises is also considered,and the relationship between fintech and traditional financial institutions is focused on,providing insight into the competing relationship between fintech and commercial banks to promote the path and logic of enterprise growth.Second,on the selection of the sample and indicators.The sample of companies is selected from all listed companies,and the results obtained are more general.The number of fintech companies in their locations is chosen for the fintech development indicators,and the selection is precise to the prefecture level,to exclude to a certain extent the differences in fintech development at the prefecture level within the same province.Thirdly,the heterogeneous role of firm growth is emphasised,and the results validate the universality of FinTech,understanding that there are differences in the role of Fin Tech for firms with different nature of ownership,different asset sizes and different regions.