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

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
Journal	Journal of Finance
Early online date	30 Aug 2024
DOIs	https://doi.org/10.1111/jofi.13384
Publication status	E-pub ahead of print - 30 Aug 2024

Bibliographical note

Publisher Copyright:
© 2024 the American Finance Association.

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10.1111/jofi.13384

Cite this

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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 = aug,

day = "30",

doi = "10.1111/jofi.13384",

language = "English",

journal = "Journal of Finance",

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AU - HAU, Harald

AU - HUANG, Yi

AU - LIN, Chen

AU - SHAN, Hongzhe

AU - SHENG, Zixia

AU - WEI, Lai

PY - 2024/8/30

Y1 - 2024/8/30

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.

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U2 - 10.1111/jofi.13384

DO - 10.1111/jofi.13384

M3 - Journal Article (refereed)

SN - 0022-1082

JO - Journal of Finance

JF - Journal of Finance

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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