Corporate financial trends, dynamics of FinTech impact and financial regulation: joint evidence from Jordan and Palestine

Purpose Previous studies have not provided a comprehensive understanding of the connections among FinTech, financial regulation and corporate financialization. Research on the relationship between these three factors is lacking, despite the fact that FinTech is known to have an impact on corporate financialization. The purpose of this study is to investigate how financial regulations affect the phenomenon of corporate financialization in publicly listed industrial firms in Jordan and Palestine. Design/methodology/approach This study examines listed companies that were involved in the industrial sector in Jordan and Palestine between 2014 and 2023. While data about other variables is taken from the databases of the Palestinian Central Bureau of Statistics, statistics on moderating factors are obtained from reliable financial sites like Amman Stock Exchange (ASE) and Palestine Stock Exchange (PEX) News. To improve the stability of this study, this paper uses winsorization procedures, which are statistical methods designed to limit the influence of any outliers by limiting extreme results. The analysis of annual data on Jordanian and Palestinian manufacturing businesses registered on the ASE and PEX spans the years 2014–2023 in an effort to close this gap and imbalance. Findings The findings from the empirical research suggest that FinTech initiatives may hinder the financialization of companies. But by putting financial regulation in place, this obstacle may be lessened. Businesses in industries with low pollution levels, state-owned firms and establishments in less marketized areas are particularly affected. Practical implications The findings provide fresh insights and a deeper understanding of the complex interactions in the fields of financial technology, regulatory supervision and company financial plans. This paper suggests policy implications and essential knowledge for policymakers, industry professionals and researchers in FinTech, financial regulation and corporate financial trends in Jordan and Palestine. Originality/value This study contributes to the existing literature and adds to the body of knowledge by emphasizing the necessity for a thorough grasp of the ways in which regulatory frameworks and financial technology (FinTech) affect businesses’ financial fortunes, particularly in developing economies such as Jordan and Palestine. This paper delves into the impact of FinTech innovations on corporate financialization from a nontraditional financial perspective, elucidating FinTech pivotal role in directing investments towards real economic growth.