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Determinants of FinTech Equity Funding Flows: Evidence From a Global Perspective

Uttam Golder Orcid Logo, Suborna Barua Orcid Logo, Mohammad Abedin Orcid Logo, Douglas Akwasi Adu Orcid Logo, Boru Ren Orcid Logo

International Journal of Finance & Economics

Swansea University Authors: Mohammad Abedin Orcid Logo, Boru Ren Orcid Logo

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DOI (Published version): 10.1002/ijfe.3086

Abstract

This study explores the factors affecting FinTech (Financial technology startups) equity financing and deals. Traditional and alternative financing are currently progressing together; however, alternative financing remains underexplored. Using panel data from 57 countries in 2010 to 2020 and one-ste...

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Published in: International Journal of Finance & Economics
ISSN: 1076-9307 1099-1158
Published: Wiley 2024
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URI: https://cronfa.swan.ac.uk/Record/cronfa68347
first_indexed 2024-11-27T13:46:53Z
last_indexed 2025-01-09T20:33:19Z
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spelling 2024-12-17T10:29:39.3333098 v2 68347 2024-11-27 Determinants of FinTech Equity Funding Flows: Evidence From a Global Perspective 4ed8c020eae0c9bec4f5d9495d86d415 0000-0002-4688-0619 Mohammad Abedin Mohammad Abedin true false 73321f2d7e2e1c7bd4be9bf6d47fd2a2 0000-0001-8647-9689 Boru Ren Boru Ren true false 2024-11-27 CBAE This study explores the factors affecting FinTech (Financial technology startups) equity financing and deals. Traditional and alternative financing are currently progressing together; however, alternative financing remains underexplored. Using panel data from 57 countries in 2010 to 2020 and one-step difference generalised method of moments (Diff-GMM) regressions, we show that, at the global level, gross domestic product (GDP), domestic credit to the private sector, regulations, innovations, globalisation, stock market return, information technology (ICT) goods export and internet users influence FinTech equity funding. With respect to FinTech deals, except GDP, regulations and globalisation, all other factors aforementioned have a substantial effect. Nevertheless, our category-specific findings slightly differ from the global context. Our study emphasises the need for the rapid development of communication technology and increased accessibility to mobile internet services for users. Moreover, authorities should strike a balance between imposing regulations and facilitating FinTech equity funding growth. Innovations should prioritise user-friendliness, affordability and commercial viability. Journal Article International Journal of Finance & Economics 0 Wiley 1076-9307 1099-1158 Equity financing, financial technology, FinTech deal, globalization, innovation, regulation 5 12 2024 2024-12-05 10.1002/ijfe.3086 COLLEGE NANME Management School COLLEGE CODE CBAE Swansea University SU Library paid the OA fee (TA Institutional Deal) This research was financially supported by Doctoral Fellowship of the University Grants Commission, Bangladesh. 2024-12-17T10:29:39.3333098 2024-11-27T09:38:37.7314486 Faculty of Humanities and Social Sciences School of Management - Accounting and Finance Uttam Golder 0000-0003-1302-838x 1 Suborna Barua 0000-0003-2848-5700 2 Mohammad Abedin 0000-0002-4688-0619 3 Douglas Akwasi Adu 0000-0002-1230-3995 4 Boru Ren 0000-0001-8647-9689 5
title Determinants of FinTech Equity Funding Flows: Evidence From a Global Perspective
spellingShingle Determinants of FinTech Equity Funding Flows: Evidence From a Global Perspective
Mohammad Abedin
Boru Ren
title_short Determinants of FinTech Equity Funding Flows: Evidence From a Global Perspective
title_full Determinants of FinTech Equity Funding Flows: Evidence From a Global Perspective
title_fullStr Determinants of FinTech Equity Funding Flows: Evidence From a Global Perspective
title_full_unstemmed Determinants of FinTech Equity Funding Flows: Evidence From a Global Perspective
title_sort Determinants of FinTech Equity Funding Flows: Evidence From a Global Perspective
author_id_str_mv 4ed8c020eae0c9bec4f5d9495d86d415
73321f2d7e2e1c7bd4be9bf6d47fd2a2
author_id_fullname_str_mv 4ed8c020eae0c9bec4f5d9495d86d415_***_Mohammad Abedin
73321f2d7e2e1c7bd4be9bf6d47fd2a2_***_Boru Ren
author Mohammad Abedin
Boru Ren
author2 Uttam Golder
Suborna Barua
Mohammad Abedin
Douglas Akwasi Adu
Boru Ren
format Journal article
container_title International Journal of Finance & Economics
container_volume 0
publishDate 2024
institution Swansea University
issn 1076-9307
1099-1158
doi_str_mv 10.1002/ijfe.3086
publisher Wiley
college_str Faculty of Humanities and Social Sciences
hierarchytype
hierarchy_top_id facultyofhumanitiesandsocialsciences
hierarchy_top_title Faculty of Humanities and Social Sciences
hierarchy_parent_id facultyofhumanitiesandsocialsciences
hierarchy_parent_title Faculty of Humanities and Social Sciences
department_str School of Management - Accounting and Finance{{{_:::_}}}Faculty of Humanities and Social Sciences{{{_:::_}}}School of Management - Accounting and Finance
document_store_str 0
active_str 0
description This study explores the factors affecting FinTech (Financial technology startups) equity financing and deals. Traditional and alternative financing are currently progressing together; however, alternative financing remains underexplored. Using panel data from 57 countries in 2010 to 2020 and one-step difference generalised method of moments (Diff-GMM) regressions, we show that, at the global level, gross domestic product (GDP), domestic credit to the private sector, regulations, innovations, globalisation, stock market return, information technology (ICT) goods export and internet users influence FinTech equity funding. With respect to FinTech deals, except GDP, regulations and globalisation, all other factors aforementioned have a substantial effect. Nevertheless, our category-specific findings slightly differ from the global context. Our study emphasises the need for the rapid development of communication technology and increased accessibility to mobile internet services for users. Moreover, authorities should strike a balance between imposing regulations and facilitating FinTech equity funding growth. Innovations should prioritise user-friendliness, affordability and commercial viability.
published_date 2024-12-05T14:41:54Z
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score 11.048149