DOI: 10.57760/sciencedb.10141
title: Bank FinTech, Non-Bank FinTech, and Corporate Fraud
title: 银行金融科技、非银行金融科技与企业舞弊

description: This study investigates the impact of two types of FinTech developed and utilized by banks and non-bank financial institutions on fraudulent behavior in A-share listed companies. Based on panel data from 2011 to 2020, the research findings suggest that both types of FinTech can suppress corporate fraud by enhancing internal control levels and external monitoring levels. Heterogeneity analysis indicates that the inhibitory effects of both FinTech types are more pronounced in companies with higher levels of digital transformation and lower levels of information disclosure. Additionally, due to differences in operating conditions, strategies, and objectives of FinTech developers, the inhibitory effect of bank FinTech is significant across all firms, whereas the effect of non-bank FinTech is only significant in high-risk firms. When distinguishing types of corporate fraud, both FinTech types significantly inhibit fraudulent activities related to information disclosure, fund utilization, and other categories. Further analysis reveals a complex interaction between the application effects of bank FinTech and non-bank FinTech. Specifically, the inhibitory effect of bank (non-bank) FinTech is significant when the development of other FinTech is high (low). By simultaneously incorporating both types of FinTech and their interaction terms, significant synergistic inhibitory effects are observed in fund misuse and other types of fraud. Finally, the results indicate that the synergistic development of both types of FinTech may introduce potential risks. In summary, this paper, by identifying the impact of FinTech development on corporate fraudulent behaviors, highlights the common characteristics and individual differences of different types of FinTech, emphasizes potential future cooperation opportunities between bank and non-bank financial technologies, and points out potential risks in the development of FinTech.
description: This study investigates the impact of two types of FinTech developed and utilized by banks and non-bank financial institutions on fraudulent behavior in A-share listed companies. Based on panel data from 2011 to 2020, the research findings suggest that both types of FinTech can suppress corporate fraud by enhancing internal control levels and external monitoring levels. Heterogeneity analysis indicates that the inhibitory effects of both FinTech types are more pronounced in companies with higher levels of digital transformation and lower levels of information disclosure. Additionally, due to differences in operating conditions, strategies, and objectives of FinTech developers, the inhibitory effect of bank FinTech is significant across all firms, whereas the effect of non-bank FinTech is only significant in high-risk firms. When distinguishing types of corporate fraud, both FinTech types significantly inhibit fraudulent activities related to information disclosure, fund utilization, and other categories. Further analysis reveals a complex interaction between the application effects of bank FinTech and non-bank FinTech. Specifically, the inhibitory effect of bank (non-bank) FinTech is significant when the development of other FinTech is high (low). By simultaneously incorporating both types of FinTech and their interaction terms, significant synergistic inhibitory effects are observed in fund misuse and other types of fraud. Finally, the results indicate that the synergistic development of both types of FinTech may introduce potential risks. In summary, this paper, by identifying the impact of FinTech development on corporate fraudulent behaviors, highlights the common characteristics and individual differences of different types of FinTech, emphasizes potential future cooperation opportunities between bank and non-bank financial technologies, and points out potential risks in the development of FinTech.