Can FinTech alleviate the long-term use of short-term debts? Evidence from China

Purpose: To deepen the structural reform of the financial system on the supply side and mitigate associated risks in the economic and financial fields, with significant practical implications for FinTech development. Design/methodology/approach: Based on microdata of listed companies, this paper constructs multi-level indicators of FinTech development. Robustness tests include alternative measures of the degree of long-term use of short-term debts, sample adjustments and heterogeneity in firm characteristics and regional differences. Findings: FinTech can significantly alleviate the long-term use of short-term corporate debt, although there are heterogeneous effects. The alleviation effect is more pronounced for state-owned enterprises, non-technology-intensive enterprises and other companies with lower levels of short-term debt maturity. Additionally, in regions with high capital mismatch and high levels of financial development, FinTech exhibits a significant suppressive effect on the long-term use of short-term corporate debt. Practical implications: The paper suggests promoting the diversification of FinTech products, emphasizing the importance of inclusive finance through FinTech, and driving China’s economic transformation and high-quality development. Originality/value: By constructing a theoretical analysis framework of “FinTech—corporate investment and financing term mismatch,” this paper provides a multi-level estimation of the factors influencing FinTech’s impact on the long-term use of short-term corporate debt. This framework aids in developing a more dialectical and objective understanding of the economic effects of FinTech’s development.