Work

The Impact of Internet Finance on the Profit Efficiency of Commercial Banks: Theory and Evidence From China

Year: 2023

Type: article

Abstract: According to the reality of China, we divide Internet finance into four parts as Internet payment services, Internet financing services, Internet financial management services, and online banking business of traditional commercial banks, to discuss the impact of Internet finance on the profit efficiency of commercial banks. Our theoretical analysis shows that the external impact of Internet finance will reduce the profit of commercial banks, but Internet financing and Internet financial management have less influence, and the financial Internet business can improve the profit efficiency of commercial banks to some extent. An empirical test of Chinese data provides support for these predictions, it suggests that the estimated impact is significant and robust. Furthermore, differences in ownerships and profit efficiency of commercial banks will be at work.

Source: SAGE Open

DOI: 10.1177/21582440231158050

Authors: Wen Yang, Chien-Chi Chu, Jing Yang, Xinyu Ye

Institutions: Shenzhen University, Foshan University, Tongji University, Shantou University

Language: English

Topic: FinTech, Crowdfunding, Digital Finance

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $1,200

Funder: Foshan University