City Research Online

Abstract

We adopt a novel variation of the traditional structure-conduct-performance modelling approach, looking at between, rather than within, industries to study the impact of changes in the bank market structure on the corporate performance of financial technology (fintech) firms using firm-level data. We use two samples, one with 231 fintech firms and one with 231 non-fintech firms across twenty-four industrialized countries over the ten-year period from 2008 to 2017. We find that changes in bank market power have a positive impact on the performance of fintech companies suggesting that such firms complement rather than compete with banks. On the other hand, within the non-fintech sector, we find that changes in bank market power have no impact on non-fintech firms. Our results are robust to several tests.

Publication Type:	Article
Additional Information:	This is the peer reviewed version of the following article: Andrikopoulos, A. & Dassiou, X. (2022). Bank market power and performance of financial technology firms. International Journal of Finance and Economics, which is to be published in final form at http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1158. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
Publisher Keywords:	Financial technology, Bank market power, Competition, Firm performance, Lerner index, Boone index
Subjects:	H Social Sciences > HG Finance
Departments:	School of Policy & Global Affairs > Economics
SWORD Depositor:	Symplectic Administrator

Export

Downloads