Fintech And The Level Of Corporate Risk-taking

The 20 th Session report noted that "adhere to the focus of development on the entity economy".We all know the importance of the entity economy.With the economic restart,lack of confidence has become a problem for the private enterprises.Most enterprises are uncertain about the economic situation and choose to invest less or not.How to eliminate the pain points of private enterprises and enhance the confidence of the private economy is the key to take the entity economy to the next level.China has taken a number of measures to improve the confidence of enterprises in their development,with the aim of encouraging their courage to take risks,improving the level of risk-taking,and adding strong impetus to the high-quality development of China’s economy.But enterprise risk taking is a resource-consuming activity.Only when enterprises have the ability to obtain resources can they have the willingness to take risks.Therefore,enterprises need to find stable and sufficient resource support to disperse risks and reduce costs.Due to the asymmetry of information,the problems of resource mismatch and factor distortion,to a certain extent,limit the availability and allocation efficiency of enterprise funds,and reduce the business confidence of enterprises.At the same time,the low transparency of market information also stimulates the motivation of decision makers to avoid risks,leading to the low level of enterprise risk taking.At present,the impact of financial technology on corporate financial behavior has attracted more and more attention,but there are still gaps.In recent years,the innovative development of Fintech based on various emerging technologies such as "cloud,network and terminal" has Fintech realizes the accurate matching of supply and demand,and directs the flow of financial sources to the important regions and underbelly of economic development.For one thing,the information advantage of Fintech raises the quality of message,lowers the financing threshold,accurately matches supply and demand,and effectively alleviates the financing constraint problem;For another,the technological advantages of Fintech have been integrated and developed in the business workflow of enterprises,increasing their business resilience,solving the challenges of resource support needed to increase their level of risk-taking,and greatly increasing entrepreneurial confidence.Therefore,the information and technology advantages of Fintech will inevitably have an impact on the improvement of risk bearing level of enterprises.At present,there is currently a lot of interest in the impact of Fintech on the financial behaviour of companies,but there are still gaps.So,in the era of China’s vigorous development of Fintech,can Fintech play a positive role in supporting enterprises to improve the level of risk taking? If yes,what is the path? What are the variations in the role that Fintech can play in increasing the level of risk-taking for companies with different characteristics and at different stages of their life cycle?In this dissertation,the article examines the relationship between Fintech and risk-taking by including Chinese A-share quoted firms from 2011 to 2020.The research shows that Fintech is playing an active role in enhancing risk-taking.Based on the financial creation view,Fintech improves the risk-taking by easing financing constraints.Based on the scientific and technological innovation view,Fintech improves the risk taking by improving operational efficiency.In next research,based on the analysis of micro heterogeneity,it is found that Fintech has a more significant driving effect on enterprises in growth and recession and private enterprises.Based on the macro level,Regions with better marketization processes amplify the positive effects of Fintech on firms to improve risk-taking.The research in this article has vital academic and realistic meanings for intensifying the innovation of the financial system,boosting the financial system to better serve the entity economy and thus fostering the higher level of the growth of the national economy.