How Does Financial Technology Drive Enterprise Innovation in China?

Purpose – As a new product of the traditional financial empowerment form through digital technology, financial technology (Fintech) allows a new financial service model and brings changes to enterprises. This study aims to find the channels through which Fintech affects enterprise innovation in China from the perspective of financial management. Design/Methodology/Approach – This study constructs an econometric model using the data of Chinese A-share listed companies from 2011 to 2019 to examine the influence of Fintech development on enterprise innovation and its transmission mechanism. Findings – The empirical results show that the development of Fintech does indeed have a driving effect on enterprise innovation. Fintech promotes enterprise innovation by alleviating financial constraints, reducing the enterprise financial expense rate, and increasing the stability of the enterprise against the backdrop of the highquality development of China’s economy. Research Implications – This study implies that actively promoting the development of the Fintech industry can promote the innovative development of enterprises; thus, policy and technical support are indispensable for promoting the development of Fintech. Also, the government should improve the regulatory system of Fintech to prevent financial risk.