Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 8, 2023 erstellt
Beschreibung:
This paper investigates whether and how FinTech development affects investors’ utilization of information from corporate earnings announcements. Using FinTech patent applications to characterize regional FinTech development in China, we find that FinTech development significantly reduces stock market reactions to corporate earnings announcements. The effect is stronger in cases of high information asymmetry and few alternative ways to communicate with investors. FinTech can provide an alternative to corporate disclosure by reducing the information acquisition costs and meeting the demand for timeliness. The decline in stock market reactions cannot be explained by lower quality of corporate financial reporting. Furthermore, the informational role of FinTech is magnified by deficiencies in the formal and informal institutions. FinTech development also erodes investors’ response to financial analysts’ information production. Our findings highlight the role of FinTech in facilitating investors’ information choice and the information environment in financial markets