Common Ownership in Fintech Markets

Tzanaki, Anna; Alekseeva, Liudmila; Azar, José

doi:10.2139/ssrn.4267062

Cited by 1 publication

(1 citation statement)

References 9 publications

(12 reference statements)

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“…It is worth noting that many fintech companies share characteristics with startups and dynamic IT firms, often operating with a relatively smaller number of employees compared to traditional financial services providers (Jain et al 2023;Dospinescu et al 2021;Grima et al 2021). Within the context of fintech companies usually privately held and start-ups (Tzanaki et al 2023;Sharma et al 2023), the stewardship theory is of particular importance. The theory suggests that managers perceive themselves as custodians of the company's resources and are intrinsically motivated to act in the best interests of all stakeholders (Chrisman 2019).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Shareholders in the Driver’s Seat: Unraveling the Impact on Financial Performance in Latvian Fintech Companies

Rupeika-Apoga,

Wendt,

Geyfman

2024

Risks

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Fintech companies are relatively young and operate in a rapidly evolving and ever-changing industry, which makes it important to understand how different factors, including shareholder presence in management roles, affect their performance. This study investigates the impact of shareholder presence in director and manager positions on the financial performance of Latvian fintechs. Our investigation centers on essential financial ratios, including Return on Assets, Return on Equity, Profit Margin, Liquidity Ratio, Current Ratio, and Solvency Ratio. Our findings suggest that the presence of shareholders in director and manager roles does not significantly affect the financial performance of fintech companies. Although the statistical analysis did not yield significant results, it is important to consider additional insights garnered from Cliff’s Delta effect sizes. Specifically, despite the lack of statistical significance, practical significance indicates that fintech companies in which directors and managers are shareholders show slightly better performance than other fintech companies. Beyond shedding light on the intricacies of corporate governance in the fintech sector, this research serves as a valuable resource for investors, stakeholders, and fellow researchers seeking to understand the impact of shareholder presence in director and manager roles on the financial performance of fintechs.

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