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Table 10 Robustness: post-crisis FinTech companies and early years

From: Entrepreneurial, institutional and financial strategies for FinTech profitability

Variables

Post-Crisis FinTech

Early Stage

Profitable

ROA

Profitable

ROA

Size

6.439***

5.537**

9.132***

8.285***

 

(1.673)

(2.368)

(1.926)

(2.727)

Asset structure

0.327***

0.175*

0.340***

0.261**

 

(0.0757)

(0.0902)

(0.0759)

(0.102)

Liquidity

− 0.000297*

− 0.000224

− 0.000301

− 0.000257

 

(0.000175)

(0.000145)

(0.000237)

(0.000175)

Solvency

0.000948***

0.00489***

0.000878**

0.00550***

 

(0.000309)

(0.000879)

(0.000338)

(0.000854)

Leverage

5.81e−07

− 1.26e−06**

− 6.82e−08

− 2.19e−06***

 

(3.76e−07)

(6.32e−07)

(3.00e−07)

(8.29e−07)

Efficiency

0.00103

0.00255*

0.000748

0.00238*

 

(0.000742)

(0.00131)

(0.000570)

(0.00131)

Entrepreneur

− 0.288**

− 0.178

− 0.212*

− 0.123

 

(0.116)

(0.150)

(0.110)

(0.150)

Number of partner founders

− 0.0367

− 0.103**

− 0.0293

− 0.0959*

 

(0.0348)

(0.0509)

(0.0366)

(0.0535)

Single entrepreneur

0.123*

− 0.129

0.163**

− 0.106

 

(0.0733)

(0.107)

(0.078)

(0.114)

Mobile app

− 0.00208

− 0.118

0.0139

− 0.0791

 

(0.0657)

(0.0841)

(0.0723)

(0.101)

Digital tracking

0.00210*

0.000272

0.0025*

− 0.000124

 

(0.00126)

(0.00154)

(0.00136)

(0.00180)

Digitally tracked regionally

− 0.0401

− 0.176***

0.00139

− 0.121*

 

(0.0571)

(0.0673)

(0.0601)

(0.0676)

Funding

− 0.138**

− 0.193**

− 0.157***

− 0.0887

 

(0.0617)

(0.0902)

(0.0537)

(0.0930)

Public subsidy

− 0.0140

0.0202

− 0.0340

− 0.00298

 

(0.0629)

(0.0828)

(0.0699)

(0.101)

FinTech accelerator

0.190*

− 0.00643

0.265**

0.133

 

(0.101)

(0.254)

(0.110)

(0.292)

Bank investor

− 0.0559

− 0.0600

− 0.0996

− 0.0162

 

(0.0952)

(0.129)

(0.102)

(0.175)

Tech cluster

− 0.249*

0.197*

− 0.295***

0.104

 

(0.137)

(0.101)

(0.108)

(0.122)

Time trend

0.0450***

0.00600

0.00476

− 0.00102

 

(0.0135)

(0.0133)

(0.0134)

(0.0142)

Observations

584

584

472

472

Number of FinTech

154

154

156

156

Year

Yes

Yes

Yes

Yes

Fixed Effects

Yes

Yes

Yes

Yes

Clustered standard errors

FinTech

FinTech

FinTech

FinTech

R2

0.5898

0.4291

0.6656

0.6758

  1. This table presents the coefficients and the clustered standard errors for the panel probit regressions on FinTech profitability. In Columns 1 and 3, the dependent variable is a binary variable that takes the value 1 if the FinTech company is profitable (return on assets is positive). In Columns 2 and 4, the dependent variable is the FinTech return on assets. Column 1 and 2 report the results for the subsample of FinTech companies founded after the crisis period (from 2009 onwards). Columns 3 and 4 report the results during the first four years of a FinTech company’s life. All variables are defined in Table 2. Standard errors are clustered at the FinTech-level. A constant term (not reported) is included in all regressions. *, **, *** Coefficients are statistically significant different than zero at least at 10%, 5%, and 1% levels