FinTech Credit and Entrepreneurial Growth

Harald HAU; Yi HUANG; Chen LIN; Hongzhe SHAN; Zixia SHENG; Lai WEI

doi:10.1111/jofi.13384

FinTech Credit and Entrepreneurial Growth

Harald HAU^*, Yi HUANG, Chen LIN, Hongzhe SHAN, Zixia SHENG, Lai WEI

^*Corresponding author for this work

Department of Finance and Insurance

Research output: Journal Publications › Journal Article (refereed) › peer-review

2 Citations (Scopus)

Abstract

Based on automated credit lines to vendors trading on Alibaba's online retail platform and a discontinuity in the credit decision algorithm, we document that a vendor's access to FinTech credit boosts its sales growth, transaction growth, and the level of customer satisfaction gauged by product, service, and consignment ratings. These effects are more pronounced for vendors characterized by greater information asymmetry about their credit risk and less collateral, which reveals the information advantage of FinTech credit over traditional credit technology.

Original language	English
Pages (from-to)	3309-3359
Number of pages	51
Journal	Journal of Finance
Volume	79
Issue number	5
Early online date	30 Aug 2024
DOIs	https://doi.org/10.1111/jofi.13384
Publication status	Published - Oct 2024

Bibliographical note

Publisher Copyright:
© 2024 the American Finance Association.

Access to Document

10.1111/jofi.13384

Cite this

@article{68a651c706514513a9f3aaf0e213b265,

title = "FinTech Credit and Entrepreneurial Growth",

abstract = "Based on automated credit lines to vendors trading on Alibaba's online retail platform and a discontinuity in the credit decision algorithm, we document that a vendor's access to FinTech credit boosts its sales growth, transaction growth, and the level of customer satisfaction gauged by product, service, and consignment ratings. These effects are more pronounced for vendors characterized by greater information asymmetry about their credit risk and less collateral, which reveals the information advantage of FinTech credit over traditional credit technology.",

author = "Harald HAU and Yi HUANG and Chen LIN and Hongzhe SHAN and Zixia SHENG and Lai WEI",

note = "Publisher Copyright: {\textcopyright} 2024 the American Finance Association.",

year = "2024",

month = oct,

doi = "10.1111/jofi.13384",

language = "English",

volume = "79",

pages = "3309--3359",

journal = "Journal of Finance",

issn = "0022-1082",

publisher = "Wiley-Blackwell Publishing Ltd",

number = "5",

}

TY - JOUR

T1 - FinTech Credit and Entrepreneurial Growth

AU - HAU, Harald

AU - HUANG, Yi

AU - LIN, Chen

AU - SHAN, Hongzhe

AU - SHENG, Zixia

AU - WEI, Lai

PY - 2024/10

Y1 - 2024/10

N2 - Based on automated credit lines to vendors trading on Alibaba's online retail platform and a discontinuity in the credit decision algorithm, we document that a vendor's access to FinTech credit boosts its sales growth, transaction growth, and the level of customer satisfaction gauged by product, service, and consignment ratings. These effects are more pronounced for vendors characterized by greater information asymmetry about their credit risk and less collateral, which reveals the information advantage of FinTech credit over traditional credit technology.

AB - Based on automated credit lines to vendors trading on Alibaba's online retail platform and a discontinuity in the credit decision algorithm, we document that a vendor's access to FinTech credit boosts its sales growth, transaction growth, and the level of customer satisfaction gauged by product, service, and consignment ratings. These effects are more pronounced for vendors characterized by greater information asymmetry about their credit risk and less collateral, which reveals the information advantage of FinTech credit over traditional credit technology.

UR - http://www.scopus.com/inward/record.url?scp=85202675382&partnerID=8YFLogxK

U2 - 10.1111/jofi.13384

DO - 10.1111/jofi.13384

M3 - Journal Article (refereed)

SN - 0022-1082

VL - 79

SP - 3309

EP - 3359

JO - Journal of Finance

JF - Journal of Finance

IS - 5

ER -

FinTech Credit and Entrepreneurial Growth

Abstract

Bibliographical note

Access to Document

Other files and links

Financial Technology, Stability, and Inclusion (金融科技、金融穩定和普惠金融) (LU Part)

Cite this

FinTech Credit and Entrepreneurial Growth

Abstract

Bibliographical note

Access to Document

Other files and links

Projects

Financial Technology, Stability, and Inclusion (金融科技、金融穩定和普惠金融) (LU Part)

Cite this