Journal Description

FinTech

FinTech is an international, peer-reviewed, open access journal on a variety of themes connected with financial technology, such as cryptocurrencies, risk management, robo-advising, crowdfunding, blockchain, new payment solutions, machine learning and AI for financial services, digital currencies, etc., published quarterly online by MDPI.

Open Access— free for readers, with article processing charges (APC) paid by authors or their institutions.
High Visibility: indexed within RePEc, and other databases.
Rapid Publication: manuscripts are peer-reviewed and a first decision is provided to authors approximately 19.7 days after submission; acceptance to publication is undertaken in 5.1 days (median values for papers published in this journal in the first half of 2023).
Recognition of Reviewers: APC discount vouchers, optional signed peer review, and reviewer names published annually in the journal.

Imprint Information Journal Flyer Open Access ISSN: 2674-1032

Latest Articles

Open AccessArticle

The Study of the Relationship among GCI, GII, Disruptive Technology, and Social Innovations in MNCs: How Do We Evaluate Financial Innovations Made by Firms? A Preliminary Inquiry

Denisa Alexandra Chifan

and

Beatrice Ipsalat

FinTech 2023, 2(3), 572-613; https://doi.org/10.3390/fintech2030033 - 28 Aug 2023

Abstract

This study aims to assess and identify the role of disruptive/digital technologies in financial innovation strategies as part of social innovations at both the firm and country level. The analysis proposed by the present study brings useful theoretical/pragmatic insights on the application of financial technologies in the context of the “fintech” revolution, as a disruptive innovation. There are few studies of this type that “cross-examine” technical/social innovative capacity at the firm level vs. the same innovative capacity at the level of the world’s major countries. Our proposed study brings some novel elements to the literature on this topic. First, the study synthesizes the factors/variables explaining technical/social innovative capacity as ranked by the GCI (Global Competitiveness Index) and GII (Global Innovation Index) at the country level and then correlates informal/empirical variables with the factors explaining innovative capacity for the 50 companies in the BCG (Boston Consulting Group) ranking. Second, the study identifies three “driving forces” (digital technologies, managers, and the market) as the main variables determining financial innovativeness (fintech revolution) at the firm level. Third, based on the “over-cross assessment” (non- statistical) of the information/data provided by the BCG study vs. the GII and GCI studies, the study suggests some ways to delineate and quantify financial innovation as part of social innovation (e.g., it is argued that up to 80% of the social innovation achieved annually by a firm relates to the financial relationships engaged by the firm with various categories of stakeholders). Finally, the study is also important from a pragmatic point of view as it suggests/proposes a number of principles that can be considered by managers for building a KM (knowledge management) and continuous financial innovation strategy. From a theoretical perspective, the study provides a starting point for further research aimed at explaining firm-level financial innovation (fintech as a disruptor) through the massive use of disruptive technologies. Full article

(This article belongs to the Special Issue Financial Technology and Innovation Sustainable Development)

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Open AccessArticle

Validation of Challenges for the Development of the Marketing Plan for Startups Considering the Post-COVID-19 Reality: An Exploratory Analysis of the Brazilian Context Using Lawshe’s Method

Ana Carla Magalhães Nascimento

Nathália de Kassia Galdino Oliveira

Verônica de Menezes Nascimento Nagata

Reimison Moreira Fernandes

and

Vitor William Batista Martins

FinTech 2023, 2(3), 560-571; https://doi.org/10.3390/fintech2030032 - 20 Aug 2023

Abstract

Background: The post-COVID-19 scenario has demonstrated the increasing importance of marketing for organizations, as retailers and entrepreneurs have had to adapt to new ways of selling their products and services. In this regard, this research aimed to identify challenges for developing the marketing plan of startups and validate them from the perspective of managers in the field, considering the market characteristics inherent to the post-COVID-19 era; Methods: To achieve this, a literature review and a survey were conducted among professionals in the field. The collected data were analyzed using the quantitative Lawshe method. Results: The results indicate that, for the development of the marketing plan of startups considering the post-COVID-19 reality, it is important to prioritize overcoming the challenges of “Consumer behavior pattern change”, “Differentiation from the competition”, “Digital expansion”, “Innovation capacity of companies”, “Creation of transformative marketing”, and “Reevaluation of marketing channels in the post-pandemic period”; Conclusions: Therefore, it can be concluded that these challenges reflect the main concerns and obstacles faced by startups in building effective marketing strategies and striving for a competitive position in the market. By recognizing and understanding these challenges, startups will be better prepared to face adversity and seize opportunities in this new market context. Full article

(This article belongs to the Special Issue Research on Corporate Finance and Financial Economics)

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Open AccessReview

Recognition and Measurement of Crypto-Assets from the Perspective of Retail Holders

Voicu D. Dragomir

and

Valentin Florentin Dumitru

FinTech 2023, 2(3), 543-559; https://doi.org/10.3390/fintech2030031 - 17 Aug 2023

Abstract

The Markets in Crypto-Assets (MiCa) Regulation of the European Union is the first comprehensive piece of legislation that seeks to protect the interests of investors in the crypto-assets sector. Although the market value of crypto-assets is significant at world level, there is a lack of clear regulatory guidelines regarding the recognition, measurement, and presentation of crypto-assets in the financial statements of investors. Considering that not all digital assets are the same, retail holders need to take into account the characteristics, rights, and obligations associated with the crypto-assets they purchase to determine the appropriate accounting method. Therefore, the research question of the present article is: Which are the main types of crypto-assets and how should they be recognized and measured in the financial statements of investors and holders? We perform a review of the accounting policies and options, relying on relevant regulations, standards, regulatory drafts, legal and academic papers, recommendations of market regulators, crypto-asset white papers, industry opinions, and media articles. There are different accounting treatments that can be applied, depending on the legal and technological aspects of each class of crypto-assets. Based on a critical discussion of accounting policies and options, our research has implications for accounting professionals, but also for standard setters, who are urged to provide clear guidelines. Identifying the key economic characteristics of each asset and determining the most appropriate way to recognize these characteristics in the financial statements are crucial for the development of a functional and trustworthy market in crypto-assets. Full article

Open AccessReview

A Bibliometric Analysis of Financial Technology: Unveiling the Research Landscape

Hiranya Dissanayake

Catalin Popescu

and

Anuradha Iddagoda

FinTech 2023, 2(3), 527-542; https://doi.org/10.3390/fintech2030030 - 06 Aug 2023

Abstract

This study presents a comprehensive bibliometric analysis of research on financial technology (FinTech) as a methodology. The aim is to unveil the research landscape, trends, and influential factors within this rapidly evolving field. By examining publication records, citation patterns, and thematic maps, valuable insights into the intellectual structure and impact of FinTech research are provided. The analysis highlights the increasing research output and global interest in FinTech, identifies key contributors and knowledge hubs driving the field, and uncovers emerging research themes such as blockchain technology, digital payments, robo-advisors, peer-to-peer lending, and regulatory frameworks. This analysis serves as a roadmap for researchers, industry professionals, and policymakers, offering guidance for navigating the vast body of FinTech research, identifying research gaps, and fostering collaborations to drive innovation in the financial industry. Overall, this bibliometric analysis contributes to a better understanding of the current state of FinTech research and provides valuable insights for future research endeavors and decision-making in the field. Full article

(This article belongs to the Special Issue Financial Technology and Innovation Sustainable Development)

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Open AccessArticle

Quantifying the Economic and Financial Viability of NB-IoT and LoRaWAN Technologies: A Comprehensive Life Cycle Cost Analysis Using Pragmatic Computational Tools

and

FinTech 2023, 2(3), 510-526; https://doi.org/10.3390/fintech2030029 - 20 Jul 2023

Abstract

This paper focuses on quantifying the economic and financial viability of NB-IoT and LoRaWAN technologies, two low-power wide-area network (LPWAN) technologies with unique characteristics that make them suitable for IoT applications. The purpose of this study is to propose a “pragmatic” artifact for performing life cycle cost analysis and demonstrate its application to these technologies. The methodology uses pragmatic computational tools to facilitate the analysis and considers all relevant economic and financial factors, such as operating costs, equipment costs, and revenue potential. The main finding of this study is that Narrow Band-Internet of Things (NB-IoT) and Long Range Wide Area Network (LoRaWAN) technologies have different cost structures and revenue potentials, which may affect their economic and financial viability for different IoT applications. Ultimately, the study concludes that a comprehensive life cycle cost analysis is critical to making informed decisions about technology adoption, and that the proposed methodology can be applied to other IoT technologies to gain insight into their economic and financial viability. Full article

(This article belongs to the Special Issue Financial Technology and Innovation Sustainable Development)

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Open AccessArticle

Big Data-Driven Banking Operations: Opportunities, Challenges, and Data Security Perspectives

Morshadul Hasan

Ariful Hoque

and

Thi Le

FinTech 2023, 2(3), 484-509; https://doi.org/10.3390/fintech2030028 - 19 Jul 2023

Abstract

At present, with the rise of information technology revolution, such as mobile internet, cloud computing, big data, machine learning, artificial intelligence, and the Internet of Things, the banking industry is ushering in new opportunities and encountering severe challenges. This inspired us to develop the following research concepts to study how data innovation impacts banking. We used qualitative research methods (systematic and bibliometric reviews) to examine research articles obtained from the Web of Science and SCOPUS databases to achieve our research goals. The findings show that data innovation creates opportunities for a well-developed banking supply chain, effective risk management and financial fraud detection, banking customer analytics, and bank decision-making. Also, data-driven banking faces some challenges, such as the availability of more data increasing the complexity of service management and creating fierce competition, the lack of professional data analysts, and data costs. This study also finds that banking security is one of the most important issues; thus, banks need to respond to external and internal cyberattacks and manage vulnerabilities. Full article

(This article belongs to the Special Issue Advances in Analytics and Intelligent System)

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Open AccessArticle

Digital Economy under Fintech Scope: Evidence from African Investment

Sonia Kherbachi

FinTech 2023, 2(3), 475-483; https://doi.org/10.3390/fintech2030027 - 14 Jul 2023

Abstract

The digital economy has revolutionized industries worldwide, prompting companies to invest in digital technologies to enhance productivity and profitability. However, the successful implementation of these technologies hinges on employees’ perceptions and satisfaction with the digital infrastructure. This paper aims to explore the impact of digital technology satisfaction on overall job satisfaction within the fintech domain. Drawing from the User-Task-Technology fit framework, it investigates the interplay between digital technology satisfaction, job satisfaction, and work-life balance. By aligning technology with task requirements and individual user needs, organizations can foster a positive work environment and improve firm performance. The study employs Principal Component Analysis (PCA) to identify key requirements for the digital economy in a digital environment. Furthermore, it addresses two research questions related to the selection of variables representing sustainability dimensions and evaluating dependency in digital economy projects under a fintech scope. The findings highlight the importance of digital technology satisfaction in driving employee job satisfaction and overall work experience. Ultimately, this research contributes to a deeper understanding of the factors influencing the digital economy and offers insights for managers and organizations seeking to optimize their digital transformation strategies. The study concludes by exploring the digital economy in the context of healthcare services in Africa, specifically focusing on the initiatives led by the World Bank. Full article

(This article belongs to the Special Issue Financial Technology and Innovation Sustainable Development)

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Open AccessArticle

Examining the Plausible Applications of Artificial Intelligence & Machine Learning in Accounts Payable Improvement

Vijaya Krishna Kanaparthi

FinTech 2023, 2(3), 461-474; https://doi.org/10.3390/fintech2030026 - 13 Jul 2023

Abstract

Accounts Payable (AP) is a time-consuming and labor-intensive process used by large corporations to compensate vendors on time for goods and services received. A comprehensive verification procedure is executed before disbursing funds to a supplier or vendor. After the successful conclusion of these validations, the invoice undergoes further processing by traversing multiple stages, including vendor identification; line-item matching; accounting code identification; tax code identification, ensuring proper calculation and remittance of taxes, verifying payment terms, approval routing, and compliance with internal control policies and procedures, for a comprehensive approach to invoice processing. At the moment, each of these processes is almost entirely manual and laborious, which makes the process time-consuming and prone to mistakes in the ongoing education of agents. It is difficult to accomplish the task of automatically processing these invoices for payment without any human involvement. To provide a solution, we implemented an automated invoicing system with modules based on artificial intelligence. This system processes invoices from beginning to finish. It takes very little work to configure it to meet the specific needs of each unique customer. Currently, the system has been put into production use for two customers. It has handled roughly 80 thousand invoices, of which 76 percent were automatically processed with little or no human interaction. Full article

(This article belongs to the Special Issue Advances in Analytics and Intelligent System)

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Open AccessReview

The Role of FinTech in Sustainable Healthcare Development in Sub-Saharan Africa: A Narrative Review

Edgar Cambaza

FinTech 2023, 2(3), 444-460; https://doi.org/10.3390/fintech2030025 - 10 Jul 2023

Cited by 1

Abstract

This narrative review explores the potential of FinTech in promoting sustainable healthcare development in Sub-Saharan Africa (SSA), focusing on the role of blockchain, crowdfunding, digital payments, and machine learning. The review also highlights the potential barriers to FinTech adoption in SSA, including limited access to technology, regulatory challenges, and cultural factors, and proposes potential solutions, such as capacity building and increased financial investment. Additionally, the review discusses the ethical and social implications of FinTech in healthcare development, including privacy, data security, equity, and accessibility. The main findings suggest that FinTech has the potential to significantly improve healthcare delivery and financing in SSA, particularly in the areas of information sharing, healthcare financing, and healthcare delivery models. However, addressing the barriers to FinTech adoption and mitigating the ethical and social implications will be essential to realizing the full potential of FinTech in healthcare development in the region. The review recommends future research and development in this area, and highlights the potential for FinTech to promote sustainable and equitable healthcare development in SSA. Full article

(This article belongs to the Special Issue Advances in Investment for Sustainable Development)

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Open AccessArticle

Developing an Ethical Framework for Responsible Artificial Intelligence (AI) and Machine Learning (ML) Applications in Cryptocurrency Trading: A Consequentialism Ethics Analysis

Haris Alibašić

FinTech 2023, 2(3), 430-443; https://doi.org/10.3390/fintech2030024 - 03 Jul 2023

Abstract

The rise in artificial intelligence (AI) and machine learning (ML) in cryptocurrency trading has precipitated complex ethical considerations, demanding a thorough exploration of responsible regulatory approaches. This research expands upon this need by employing a consequentialist theoretical framework, emphasizing the outcomes of AI and ML’s deployment within the sector and its effects on stakeholders. Drawing on critical case studies, such as SBF and FTX, and conducting an extensive review of relevant literature, this study explores the ethical implications of AI and ML in the context of cryptocurrency trading. It investigates the necessity for novel regulatory methods that address the unique characteristics of digital assets alongside existing legalities, such as those about fraud and insider trading. The author proposes a typology framework for AI and ML trading by comparing consequentialism to other ethical theories applicable to AI and ML use in cryptocurrency trading. By applying a consequentialist lens, this study underscores the significance of balancing AI and ML’s transformative potential with ethical considerations to ensure market integrity, investor protection, and overall well-being in cryptocurrency trading. Full article

(This article belongs to the Special Issue Advances in Analytics and Intelligent System)

Open AccessArticle

Practical Application of Deep Reinforcement Learning to Optimal Trade Execution

and

FinTech 2023, 2(3), 414-429; https://doi.org/10.3390/fintech2030023 - 29 Jun 2023

Abstract

Although deep reinforcement learning (DRL) has recently emerged as a promising technique for optimal trade execution, two problems still remain unsolved: (1) the lack of a generalized model for a large collection of stocks and execution time horizons; and (2) the inability to accurately train algorithms due to the discrepancy between the simulation environment and real market. In this article, we address the two issues by utilizing a widely used reinforcement learning (RL) algorithm called proximal policy optimization (PPO) with a long short-term memory (LSTM) network and by building our proprietary order execution simulation environment based on historical level 3 market data of the Korea Stock Exchange (KRX). This paper, to the best of our knowledge, is the first to achieve generalization across 50 stocks and across an execution time horizon ranging from 165 to 380 min along with dynamic target volume. The experimental results demonstrate that the proposed algorithm outperforms the popular benchmark, the volume-weighted average price (VWAP), highlighting the potential use of DRL for optimal trade execution in real-world financial markets. Furthermore, our algorithm is the first commercialized DRL-based optimal trade execution algorithm in the South Korea stock market. Full article

(This article belongs to the Special Issue Advances in Analytics and Intelligent System)

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Open AccessArticle

Investigating Acceptance of Digital Asset and Crypto Investment Applications Based on the Use of Technology Model (UTAUT2)

Dian Palupi Restuputri

Figo Bimaraka Refoera

and

Ilyas Masudin

FinTech 2023, 2(3), 388-413; https://doi.org/10.3390/fintech2030022 - 28 Jun 2023

Abstract

In recent years, cryptocurrency has increased in popularity in Indonesia. In Indonesia, based on data from the Ministry of Trade (Kemendag), until the end of May 2021, the number of investors in cryptocurrency assets or crypto money was 6.5 million people. This number has increased by more than 50 percent when compared to 2020 when there were 4 million people. The Pintu application is the first crypto mobile application in Indonesia that is committed to solving crypto investment problems, especially for beginners and ordinary people. Even though it provides benefits, investing in cryptocurrency can provide high profits. In an instant, it can also make a profit. The motion, which is like a roller coaster, requires strong mental readiness to invest in cryptocurrencies. This should also be a critical consideration for investors, especially young investors. Therefore, it is necessary to understand what factors contribute to building stronger attitudes and behavioral intentions toward the PINTU application. This research analyzes the data using the use of technology 2 method with the partial least square (PLS) analysis technique method, which will later be processed in the form of data results in the form of responses of the user when using the application. Facilitating conditions and social influence are the most influential indicators. The results of the study show that behavioral intention to adopt has a relationship with behavioral intention to recommend, and behavioral intention to adopt positively and significantly influences the intention to recommend. Full article

(This article belongs to the Special Issue Advances in Investment for Sustainable Development)

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Open AccessViewpoint

Digital Banks in Brazil: Struggling to Reach the Breakeven Point or a New Evolution Wave?

Luiz Antonio Bueno

Tiago F. A. C. Sigahi

and

Rosley Anholon

FinTech 2023, 2(3), 374-387; https://doi.org/10.3390/fintech2030021 - 23 Jun 2023

Abstract

Digital banks have profoundly changed the financial industry’s operations. In this scenario, the study of digital banks has gained increasing attention in the academic community. However, there is still a lot of room to understand how this type of organization functions and impacts different contexts. Considering the information collected, partial findings, and the professional experience of those involved in a larger research project, the main objective of this study is to present the Brazilian scenario related to digital banks from the analytical perspective of the research group. The methodological approach included analysis of partial results of a larger research project, bibliographic research, analysis of public data about digital banks in Brazil, and multidisciplinary discursive approach to conduct debates with the support of academic literature and experience from top managers working in major Brazilian financial institutions. Data on key performance indicators (KPIs), including cost breakdown, net revenue, return on equity (ROE), and cost-to-income ratio, are presented and analyzed for both traditional and digital banks. Furthermore, this study puts forward potential avenues for future research within three main research domains: digital operational efficiency for banks, customer attraction strategies employed by digital banks, and the utilization of digital financial services in the retail industry. Full article

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Open AccessArticle

The Case for RFID-Enabled Traceability in Cash Movements

Lance Decker

and

Ben Zoghi

FinTech 2023, 2(2), 344-373; https://doi.org/10.3390/fintech2020020 - 16 Jun 2023

Abstract

Cash movements between banks and customers are often conducted through armored courier services. These armored couriers are hesitant to adopt new technologies because the business’s nature requires well-documented custody transfers of cash bags. Often, these transfers are still based on paper receipts. The researchers believe that using radio frequency identification (RFID) and an application programming interface (API) between all parties in the cash management ecosystem reduces cost, improves efficiency, and increases capacity. To alleviate the hesitancy of armored couriers, a simulation model is made that operates much like an existing 45-vehicle branch. Once the model was validated, changes were made to the model to adopt the API interfaces and RFID systems required. In addition, an RFID-based sorting robot was implemented. A comparison focused on the workforce utilization of armored vehicle crews and branch tellers. As expected, the resulting model significantly reduces staffing requirements, improves efficiency, and increases capacity. The operational behaviors of tellers were reduced by 79%, and truck route durations were reduced by 43%. The expectation is that this research will help armored couriers see the advantages of adopting such a system and spur additional investigation of the solution. Finally, the cost of the system and operational savings were put into a return on investment/payback period calculation, revealing an annual savings of approximately USD 2.2 million after a one-year payback period. Full article

(This article belongs to the Special Issue Research on Corporate Finance and Financial Economics)

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Open AccessArticle

The Policies, Practices, and Challenges of Digital Financial Inclusion for Sustainable Development: The Case of the Developing Economy

Godfred Anakpo

Zizipho Xhate

and

Syden Mishi

FinTech 2023, 2(2), 327-343; https://doi.org/10.3390/fintech2020019 - 01 Jun 2023

Cited by 2

Abstract

Globally, over 1.4 billion adult people remain unbanked. This worrisome phenomenon was exacerbated by the outbreak of the COVID-19 pandemic, which further created a new dimension of inequality in accessing financial services. Digital financial inclusion promises to be an effective tool for addressing this socioeconomic ill and propelling economic development. Given the limited studies on the subject in the context of developing economies, it is imperative to understand the existing policies, practices, and barriers to digital financial inclusion in developing economies so as to provide cutting-edge interventions for redress. It is against this background that this study seeks to address the following research questions: (1) What is the state of digital financial inclusion in the developing economy? (2) What are the policies and practices regarding digital financial inclusion in the developing economy? (3) What are the barriers to digital financial inclusion and innovative interventions for redress? Findings reveal that about 44% of the adult population in developing countries does not have access to financial services, with only a few countries that have made significant progress and gains through policy and practice, such as mobile financial services, mobile money interoperability, native connectivity, human capital development, and the digitalization of public services for digital financial inclusion. Our findings also identify challenges and implications with recommendations, which are discussed in detail in this paper. Full article

(This article belongs to the Special Issue Advances in Investment for Sustainable Development)

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Open AccessArticle

Unlocking the Potential of Blockchain Technology in the Textile and Fashion Industry

Sunhilde Cuc

FinTech 2023, 2(2), 311-326; https://doi.org/10.3390/fintech2020018 - 24 May 2023

Abstract

The textile and fashion industry is on the brink of a major disruption, and blockchain technology (BT) presents a promising solution that could transform the industry by facilitating supply chain transparency, traceability, and sustainability. This article explores the potential of BT in the textile and fashion industry, with a focus on its current applications and potential impact. Using case studies and analyzing all announced blockchain projects from January 2017 to January 2023, we examine the diversity of blockchain applications across different aspects of the textile and fashion industry, including smart contracts and payment processing, supply chain tracking, sustainability applications, and customer engagement. The findings suggest an increasing number of companies are adopting BT, and that BT has the potential to revolutionize the T and F industry by creating a more transparent and efficient supply chain, reducing fraud and counterfeiting, and increasing customer confidence in products. We also identified the challenges and difficulties that may arise during the implementation of BT. This article contributes to the literature on BT in the textile and fashion industry, providing critical insights into its potential impact. Full article

(This article belongs to the Special Issue Financial Technology and Innovation Sustainable Development)

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Open AccessArticle

Impact of the COVID-19 Pandemic on Cryptocurrency Markets: A DCCA Analysis

and

FinTech 2023, 2(2), 294-310; https://doi.org/10.3390/fintech2020017 - 24 May 2023

Cited by 1

Abstract

Extraordinary events, regardless of their financial or non-financial nature, are a great challenge for financial stability. This study examines the impact of one such occurrence—the COVID-19 pandemic—on cryptocurrency markets. A detrended cross-correlation analysis was performed to evaluate how the links between 16 cryptocurrencies were changed by this event. Cross-correlation coefficients that were calculated before and after the onset of the pandemic were compared, and the statistical significance of their variation was assessed. The analysis results show that the markets of the assessed cryptocurrencies became more integrated. There is also evidence to suggest that the pandemic crisis promoted contagion, mainly across short timescales (with a few exceptions of non-contagion across long timescales). We conclude that, in spite of the distinct characteristics of cryptocurrencies, those in our sample offered no protection against the financial turbulence provoked by the COVID-19 pandemic, and thus, our study provided yet another example of ‘correlations breakdown’ in times of crisis. Full article

(This article belongs to the Special Issue Financial Technology and Innovation Sustainable Development)

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Open AccessEssay

Enterprise Financialization and Technological Innovation: An Empirical Study Based on A-Share Listed Companies Quoted on Shanghai and Shenzhen Stock Exchange

Tao Zhu

and

Xinyu Sun

FinTech 2023, 2(2), 275-293; https://doi.org/10.3390/fintech2020016 - 23 Apr 2023

Abstract

In recent years, the growth rate of China’s real industry has slowed down while the financial industry has entered a phase of rapid development. Driven by the profit-seeking motive of capital, real enterprises tend to carry out financial investments, and the degree of corporate financialization has been rising. This paper selects A-share listed enterprises in Shanghai and Shenzhen from 2009 to 2020 as research samples to study the impact of corporate financialization on technological innovation and the mediating effect of financing constraints from the perspective of financial asset holding. The study found that the financialization of enterprises’ crowding out effect on technological innovation has led to the phenomenon of “turning from real to virtual”. We also found that the crowding-out effect had experienced lag. This conclusion still held when we controlled for endogeneity. The heterogeneity analysis showed that the financialization of non-state-owned enterprises had an excessive inhibitory effect on technological innovation, and the financialization of enterprises in eastern China has had a remarkable inhibitory effect on technological innovation. The influence mechanism analysis showed how financing constraints played a crucial mediating role in corporate financialization inhibiting technological innovation, and corporate financialization has inhibited technological innovation by exacerbating financing constraints. Based on this research, we propose targeted suggestions to prevent the excessive financialization of enterprises on both government and enterprise levels. Full article

(This article belongs to the Special Issue Financial Technology and Innovation Sustainable Development)

Open AccessReview

Recent Trends in Accounting and Information System Research: A Literature Review Using Textual Analysis Tools

Fábio Albuquerque

and

Paula Gomes Dos Santos

FinTech 2023, 2(2), 248-274; https://doi.org/10.3390/fintech2020015 - 12 Apr 2023

Abstract

Accounting has been evolving to follow the latest economic, political, social, and technological developments. Therefore, there is a need for researchers to also include in their research agenda the emerging topics in the accounting area. This exploratory paper selects technological matters in accounting as its research object, proposing a literature review that uses archival research as a method and content analysis as a technique. Using different tools for the assessment of qualitative data, this content analysis provides a summary of those papers, such as their main topics, most frequent words, and cluster analysis. A top journal was used as the source of information, namely The International Journal of Accounting Information Systems, given its scope, which links accounting and technological matters. Data from 2000 to 2022 was selected to provide an evolutive analysis since the beginning of this century, with a particular focus on the latest period. The findings indicate that the recent discussions and trending topics in accounting, including matters such as international regulation, the sustainable perspective in accounting, as well as new methods, channels, and processes for improving the entities’ auditing and reporting, have increased their relevance and influence, enriching the debate and future perspectives in combination with the use of new technologies. Therefore, this seems to be a path to follow as an avenue for future research. Notwithstanding, emerging technologies as a research topic seem to be slower or less evident than their apparent development in the accounting area. The findings from this paper are limited to a single journal and, therefore, this limitation must be considered in the context of those conclusions. Notwithstanding, its proposed analysis may contribute to the profession, academia, and the scientific community overall, enabling the identification of the state of the art of literature in the technological area of accounting. Full article

(This article belongs to the Special Issue Financial Technology and Innovation Sustainable Development)

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Open AccessArticle

Market Crashes and Time-Translation Invariance

Simon Gluzman

FinTech 2023, 2(2), 221-247; https://doi.org/10.3390/fintech2020014 - 27 Mar 2023

Abstract

The general framework for quantitative technical analysis of market prices is revisited and extended. The concept of a global time-translation invariance and its spontaneous violation and restoration is introduced and discussed. We find that different temporal patterns leading to some famous crashes (e.g., bubbles, hockey sticks, etc.) exhibit analogous probabilistic distributions found only in the time series for the stock market indices. A number of examples of crashes are presented. We stress that our goal here is to study the crash as a particular phenomenon created by spontaneous time-translation symmetry breaking/restoration. We ask only “how to calculate and interpret the probabilistic pattern which we encounter in the day preceding crash, and how to calculate the typical market reactions to shock?”. Full article

(This article belongs to the Special Issue Advances in Investment for Sustainable Development)

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