Fintech and corporate resilience to the COVID-19 pandemic: Empirical evidence from Vietnam

Abstract

The research studies the role of Fintech in shaping corporate resilience to the

COVID-19 pandemic by analyzing the daily stock prices of Vietnamese listed non- financial firms for the one-year period from the outbreak of pandemic (2020–2021).

Using the ordinary least squares (OLS) and binomial regression models, the research finds that firms located in regions with higher levels of Fintech development have the recovery rate more quickly. Specifically, Fintech has the ability to regenerate and shape the economy by facilitating firms‘ access to external financing. Further analysis shows that there is a heterogeneity in the extent of Fintech's influence on the enterprise system: state-owned enterprises and small-scale enterprises have a faster recovery rate under Fintech's support. In addition, the study finds that the weak efficiency of the Vietnamese market accompanied with the disproportionate dispersion of Fintech businesses is a significant barrier limiting the ability of businesses to support the recovery process.