FinTech and Cross-regional Capital Flows——From the Perspective of Corporate Inter-regional Investments
Capital flows across regions are crucial to national economic growth and balanced regional development,driving the efficient distribution of resources and spurring economic and productivity gains in capital-starved regions.This paper examines the impact of fintech development on capital flows across regions at the provincial level using data on inter-regional investments of Chinese listed companies from 2011 to 2022.The findings indicate that FinTech enhancement plays a key driving role in facilitating capital flows across regions.Further insights reveal that FinTech progress effectively reduces information asymmetry between financial institutions and firms as well as short-sighted behaviour of management,and alleviates the constraints of corporate financing,while enhancing industrial chain modernisation and enterprise value,which in turn enhances inter-regional capital mobility.In particular,for state-owned enterprises,non-bank shareholder firms,and firms located in the eastern region,FinTech has been particularly prominent in facilitating their cross-regional investments,effectively promoting the flow of capital across regions.This paper suggests that policymakers should consider providing tax incentives and financial subsidies to reduce the operating costs of enterprises and encourage innovation,as well as establishing a sound regulatory framework and simplifying investment procedures to support the development of FinTech and stimulate the incentives of enterprises to invest across regions,and steering the economy towards high-quality development.
FinTechCross-regional Capital FlowsCorporate Inter-regional InvestmentFinancing ConstraintsFirm Value
NETL
NSTL
万方数据
