Fintech credit and corporate cash holdings around the world

This study examines the relationship between fintech credit and corporate cash holdings in a global context. Using a sample of 17,930 firms across 30 countries, we find a significant negative relationship between fintech credit and cash holdings. We further provide evidence that fintech credit negatively influences firm cash holdings through lower financial frictions and better corporate governance channels. Additional analysis reveals that the negative influence of fintech credit on cash holdings is more pronounced among firms in countries with higher economic development, higher financial development, stronger investor protection, and higher national governance quality. Further evidence shows that this negative effect is stronger among financially constrained firms and those operating in highly competitive industries. Our results are consistent across several robustness tests and are free from endogeneity issues. JEL Classification: E51, E66, G23, G32, G38