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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| Format: | Article |
| Language: | English |
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CSRC Publishing
2025-06-01
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| Series: | Sustainable Business and Society in Emerging Economies |
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| Online Access: | https://publishing.globalcsrc.org/ojs/index.php/sbsee/article/view/3381 |
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| _version_ | 1849395867263434752 |
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| author | Muhammad Mubeen Thepdawala |
| author_facet | Muhammad Mubeen Thepdawala |
| author_sort | Muhammad Mubeen Thepdawala |
| collection | DOAJ |
| description | 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.
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| format | Article |
| id | doaj-art-abe7275efabb4cb2a0c9710a26dd291c |
| institution | Kabale University |
| issn | 2708-2504 2708-2172 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | CSRC Publishing |
| record_format | Article |
| series | Sustainable Business and Society in Emerging Economies |
| spelling | doaj-art-abe7275efabb4cb2a0c9710a26dd291c2025-08-20T03:39:29ZengCSRC PublishingSustainable Business and Society in Emerging Economies2708-25042708-21722025-06-017210.26710/sbsee.v7i2.3381Impact of Fintech Adoption on Corporate Financial Structure and Performance: A Cross-Country Study of NBFCsMuhammad Mubeen Thepdawala0Iqra University Karachi, PakistanPurpose 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. https://publishing.globalcsrc.org/ojs/index.php/sbsee/article/view/3381Non-banking financial CompaniesCorporate financial structureFinTechFinancial inclusionFinTech adoption rate |
| spellingShingle | Muhammad Mubeen Thepdawala Impact of Fintech Adoption on Corporate Financial Structure and Performance: A Cross-Country Study of NBFCs Sustainable Business and Society in Emerging Economies Non-banking financial Companies Corporate financial structure FinTech Financial inclusion FinTech adoption rate |
| title | Impact of Fintech Adoption on Corporate Financial Structure and Performance: A Cross-Country Study of NBFCs |
| title_full | Impact of Fintech Adoption on Corporate Financial Structure and Performance: A Cross-Country Study of NBFCs |
| title_fullStr | Impact of Fintech Adoption on Corporate Financial Structure and Performance: A Cross-Country Study of NBFCs |
| title_full_unstemmed | Impact of Fintech Adoption on Corporate Financial Structure and Performance: A Cross-Country Study of NBFCs |
| title_short | Impact of Fintech Adoption on Corporate Financial Structure and Performance: A Cross-Country Study of NBFCs |
| title_sort | impact of fintech adoption on corporate financial structure and performance a cross country study of nbfcs |
| topic | Non-banking financial Companies Corporate financial structure FinTech Financial inclusion FinTech adoption rate |
| url | https://publishing.globalcsrc.org/ojs/index.php/sbsee/article/view/3381 |
| work_keys_str_mv | AT muhammadmubeenthepdawala impactoffintechadoptiononcorporatefinancialstructureandperformanceacrosscountrystudyofnbfcs |