Conceptualising the Corporate Governance Issues of Fintech Firms

Najaf, Khakan; Chin, Alice; Najaf, Rabia

doi:10.1007/978-3-030-62796-6_10

Cited by 21 publications

(20 citation statements)

References 43 publications

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“…( 1 ): Earnings per share ( EPS ), return on assets ( ROA ) and return on equity ( ROE ). Use of EPS , in this manner, has precedence in the literature [ 24 , 55 – 61 ].…”

Section: Methodsmentioning

confidence: 99%

“…Listed fintech firms are more likely to be disruptive rather than sustainable. Listed fintech firms must implement a greater degree of product innovation to maintain their large scale of operations vis-à-vis non-listed fintech firms (Najaf, Chin and Najaf [ 24 ]). Similarly, fintech start-ups are also more likely to belong to the disruptive category due to the high level of product differentiation required for a successful launch in an industry with this level of competition (McWaters, Bruno, Lee and Blake, [ 25 ]; [ 26 ].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Most business conducted by fintech firms is conducted in a digital environment. This renders fintech firms vulnerable to cyberattacks and the loss of confidential data [ 41 ], Najaf et al [ 24 ]). The operations of fintech firms cross geographic boundaries to a greater extent than non-fintech firms.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

See 2 more Smart Citations

Does electronic economics matter to financial technology firms?

Najaf

Sinnadurai²,

Devi

et al. 2022

Electron Commer Res

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“…( 1 ): Earnings per share ( EPS ), return on assets ( ROA ) and return on equity ( ROE ). Use of EPS , in this manner, has precedence in the literature [ 24 , 55 – 61 ].…”

Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Does electronic economics matter to financial technology firms?

Najaf

Sinnadurai²,

Devi

et al. 2022

Electron Commer Res

Self Cite

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“…In terms of corporate governance (Governance)-The businesses of firms in regions with high levels of FinTech development are primarily digital, and firms' digital operations are exposed to the risk of cyber-attacks and data theft by competitors (Treleaven, 2015). From a geographical perspective, Najaf et al (2021) argued that firms with high levels of FinTech operate across geographical boundaries to a greater extent, and firms will face higher foreign exchange and political risks (Faccio, 2006). Higher operational risk makes firms improve the quality of their internal governance (Claessens and Fan, 2002;Sinnadurai, 2018).…”

Section: Theoretical Analysis and Research Hypothesis 21 Fintech And ...mentioning

confidence: 99%

Can FinTech improve corporate environmental, social, and governance performance?—A study based on the dual path of internal financing constraints and external fiscal incentives

Huang

Yang

et al. 2022

Front. Environ. Sci.

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The fulfillment of ESG responsibility by enterprises is crucial to achieving China’s “double carbon goal” and the sustainable development of the whole society. However, ESG development is facing financing constraints and information asymmetry, while the rapid development of fintech supports ESG development to improve quality and efficiency. Therefore, it is crucial to study the impact of fintech on corporate ESG development. Can financial technology (FinTech) “empower” traditional financial institutions with technology to improve corporate ESG performance? Based on this, this paper examines the relationship between regional FinTech development and corporate ESG performance and its underlying mechanisms from internal and external perspectives, using data from Chinese A-share listed companies from 2011 to 2020. The following were found: 1) The level of regional FinTech development significantly contributes to firms’ ESG performance, and the results remain robust after mitigating endogeneity using Bartik instrumental variables and difference-in-differences model estimation. 2) Mechanistic analysis finds that FinTech not only alleviates the internal financing constraints of firms, but also enhances the external government subsidies and tax rebates of firms. These significantly contribute to the improvement of firms’ ESG performance. 3) Heterogeneity analysis shows that the contribution of FinTech to improving corporate ESG performance is more pronounced in the eastern region, mature firms and firms with CEOs with unbanked financial backgrounds. Therefore, in the context of sustainable development, we should continue to promote the development of FinTech, use modern technology to “empower” finance, and help enterprises balance economic and social benefits to build a sustainable country.

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“…The longer executive tenure, as discussed earlier, leverages an executives' ability to understand the business environment, which enhances the executives' capabilities to assess and measure systematic risks adequately (Najaf et al , 2021a, b), and develops a mechanism to mitigate those risks. However, several studies investigated the executives' characteristics and the risk preference, for instance, executive age (Ding et al , 2015; Serfling, 2014; Sitkin and Pablo, 1992), executive compensation and lifestyle (Gray and Cannella, 1997; Laufs et al , 2016), executive gender (Dah et al , 2020; Faccio et al , 2016) and executive team diversity (Fernández-Temprano and Tejerina-Gaite, 2020; Knight et al , 1999).…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

The ascension of executives' tenure, corporate risk-taking and corporate performance: evidence from Malaysia

Atayah

Najaf

Subramaniam

et al. 2021

APJBA

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PurposeThis study aims to investigate the implication of top executives’ number of years of experience (tenure) on corporate risk-taking behaviour and corporate performance in Malaysian corporations.Design/methodology/approachTo test the hypothesis efficiently, the authors have extracted the data from Bloomberg for 788 listed companies of the Malaysian Stock Exchange. The methodology entails ordinary least squares regressions, quantile regression and dynamic system generalized method of moments model.FindingsFirst, the authors show that executive management tenure has a significant negative relationship with corporate risk-taking. It means that the long-tenured executives tend to undertake less risky strategies and decisions. Second, this study reveals that the longer executive management tenure has a positive relationship with corporate performance. Third, the moderating effect of corporate risk-taking with executive tenure (Tenure dummy*Risk) has a negative relationship with the corporate performance by 1%.Practical implicationsIt implies that the appointment of experienced executive management contributes towards corporate performance directly. However, experienced management trends take less risk, which eventually results in mitigating the corporate performance. On that basis, the findings are significant in highlighting the usefulness of executive leadership term and offers insights to academics, practitioners and policymakers.Originality/valueThis paper is novel since it is unique in evaluating the executive tenure and the preferences to handle risk strategies and how that impact the firm performance.

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Conceptualising the Corporate Governance Issues of Fintech Firms

Cited by 21 publications

References 43 publications

Does electronic economics matter to financial technology firms?

Does electronic economics matter to financial technology firms?

Can FinTech improve corporate environmental, social, and governance performance?—A study based on the dual path of internal financing constraints and external fiscal incentives

The ascension of executives' tenure, corporate risk-taking and corporate performance: evidence from Malaysia

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