Does bank FinTech improve corporate innovation?

This study investigates the effects of bank FinTech on corporate innovation. Building a large sample of Chinese commercial banks and listed firms over 2010–2020, we find that bank FinTech promotes corporate innovation and the results are consistent. We also find that bank FinTech enhances corporate innovation by mitigating the inhibitory effects of financing constraints and management costs. In addition, the positive effect is more pronounced in firms with poorer financial endowments and private firms. Overall, we provide a timely study of the value of bank FinTech in emerging countries like China from the brand-new perspective of corporate innovation.