Jiang Jiatong,a Yang Lu b and Yin Zhentao c

　　a School of International Trade and Economics, University of International Business and Economics

　　b School of Public Policy & Management, Tsinghua University

　　c Institute of Finance and Banking, Chinese Academy of Social Sciences

　　Abstract：The interplay between financial technology (FinTech) and real economy firms has garnered considerable attention. This paper explores the relationship and mechanism between FinTech and corporate zombification using the data of Chinese A-share listed firms in China from 2011 to 2021. The research findings reveal that FinTech significantly inhibits firm zombification, and FinTech breadth and depth both play a significant role in restraining firm zombification. Mechanism exploration indicates that, on the one hand, FinTech reduces friction in the financial market, inhibiting firm zombification by improving firm investment efficiency, especially alleviating under-investment. On the other side, FinTech indirectly affects the technological investment, production, and operation of firms, thereby inhibiting firm zombification by increasing their total factor productivity. Heterogeneity analysis suggests that the inhibitory effect of FinTech on corporate zombification is more pronounced for non-state- owned firms and small-sized firms, as well as those in manufacturing industries and highly competitive industries. This paper provides some novel evidence on evaluating the effect of FinTech on firms and also offers new insights for efficient governance of zombie firms.

　　Keywords: FinTech, zombie firms, investment efficiency, total factor productivity