The Impact of Fintech Lending on Debt Heterogeneity: Evidence from Emerging Markets

Abstract

This study investigates the impact of fintech lending on debt heterogeneity in Indian firms from 2001 to 2019, a period marked by significant fintech advancements. Utilizing data from the CMIE Prowess IQ Database, this research explores how the emergence of fintech has transformed the corporate debt landscape, particularly focusing on the diversity and structure of debt portfolios. The analysis includes an assessment of 53,037 firm-year observations, emphasizing the role of firm life-cycle stages, business group affiliations, and other macroeconomic factors. The findings reveal substantial shifts in debt heterogeneity patterns, underlining the profound influence of fintech on corporate financial strategies and performance in emerging markets.