Do Capital Market Investors Value FinTech? Evidence from U.S. Seasoned Equity Offerings
Other Title
資本市場投資者是否重視金融科技？－來自美國上市公司現金增資的證據
Journal
會計審計論叢
Journal Volume
15
Journal Issue
1
Start Page
41
End Page
86
ISSN
2221-9374
Date Issued
2025-06
Author(s)
Abstract
This paper examines whether investors value financial technology (FinTech) development when reacting to seasoned equity offerings (SEOs). Using 986 observations of U.S. SEOs from 2019 to 2022, we find that firms with better FinTech experience more positive reactions than others. This positive effect is especially pronounced for firms with higher levels of information asymmetry, highlighting FinTech's role in reducing information asymmetry. An extended event window analysis further shows that FinTech adoption continues to generate positive investor sentiment beyond the SEO announcement period. Beyond short-term market reactions, FinTech also contributes to long-term firm performance. Moreover, firms with better Fintech demonstrate greater investment efficiency by reducing underinvestment. Our findings remain robust after testing alternative FinTech proxies, accounting for the COVID-19 period, excluding technology-intensive firms, and considering the potential self-selection bias. Overall, our findings indicate that investors highly value FinTech for its ability to reduce information asymmetry and improve investment efficiency and firm performance.
Subjects
Financial technology (FinTech)
Seasoned equity offerings (SEO)
Market reaction
Investment efficiency
Firm performance
Type
journal article