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Impact of FinTech on Stock Price Liquidity

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International Journal of Finance & Economics

Published online on

Abstract

["International Journal of Finance &Economics, Volume 31, Issue 2, Page 2332-2364, April 2026. ", "\nABSTRACT\nWe examine whether and how financial technology (FinTech) influences stock price liquidity. FinTech was measured using the digital finance index from the Institute of Digital Finance of Peking University (PKU‐digital finance IIC), the Shanghai Finance Institute and Ant Financial Services Company. By using a sample of Chinese listed firms from 2011 to 2022, results from ordinary least squares regression indicate that FinTech is positively associated with stock price liquidity. The relationship between FinTech and stock price liquidity is more pronounced in the presence of higher media coverage, analysts' following, and in non‐state‐owned enterprises but weaker when economic policy uncertainty is higher. The findings remain consistent with alternative measures of FinTech, omitted variables problems and endogeneity issues. Results provide insights that the development of FinTech increases financial transparency, which promotes the information environment, thereby increasing stock liquidity. Findings contribute to the literature on the governance role of FinTech in influencing stock liquidity.\n"]