Impact of Fintech Adoption on Corporate Financial Structure and Performance: A Cross-Country Study of NBFCs

Purpose This study investigates the impact of FinTech adoption on the financial performance and structure of non-banking finance companies (NBFCs) across multiple economies, ranging from emerging to developed markets. Based upon the Technology Acceptance Model (TAM), Innovation Diffusion Theory (I...

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Bibliographic Details
Main Author: Muhammad Mubeen Thepdawala
Format: Article
Language:English
Published: CSRC Publishing 2025-06-01
Series:Sustainable Business and Society in Emerging Economies
Subjects:
Online Access:https://publishing.globalcsrc.org/ojs/index.php/sbsee/article/view/3381
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Summary:Purpose This study investigates the impact of FinTech adoption on the financial performance and structure of non-banking finance companies (NBFCs) across multiple economies, ranging from emerging to developed markets. Based upon the Technology Acceptance Model (TAM), Innovation Diffusion Theory (IDT), and Resource-Based View (RBV), the research examines whether FinTech adoption enhances profitability (measured by net profits) or optimizes the financial structure (measured by debt-to-equity ratio). Design/Methodology/Approach Conducted multivariate analysis using the sample of 120 NBFCs from 12 countries from emerging and developed economies, incorporating FinTech adoption rate, market capitalization, and effective tax rate as the predictors. Findings The results uncover that FinTech adoption does positively impact performance and significantly optimizes the capital structure by lowering the reliance on debt financing. In contrast, capitalization and effective tax rates don’t have any significant impact. Implications/Originality/Value The finding underscores the strategic importance of technological effectiveness in organizational resource contribution and competitive advantage in the market. This research contributes to theoretical advancements by integrating TAM, IDT, and RBV and provides insights for stakeholders, policy makers, and financial institutions aiming to enhance the performance and optimize the capital structure of NBFCs through FinTech integration and innovations.  
ISSN:2708-2504
2708-2172