Purpose
This study aims to look at how financial technology (FinTech) companies adhere to sustainable standards in contrast to their counterparts. Following the validation of its new sustainability index, this study looks into the impact of sustainability on the stock performance of FinTech companies.
Design/methodology/approach
To efficiently test the hypotheses, sample has been collected from the Bloomberg of all FinTech and non-FinTech companies from the USA. The final sample comprises 1,712 company-year observations over the investigation period 2010–2019. The methodology entails ordinary least squares regressions and generalized panel methods of moments (GMM).
Findings
The results suggest that the developed sustainability index is a valid proxy for sustainability measures and directly relates to stock performance. Besides, the evidence indicates that non-FinTech companies display superior sustainability and stock performance compared to FinTech companies. The present results corroborate with stakeholder theory, which implies that quality sustainability performance will alleviate the agency issue and safeguard the shareholders’ interest.
Research limitations/implications
Despite the fact that it presents the limitation of not considering other dimensions of financial performance, this research is important as it highlights the sustainability practices by the FinTech and non-FinTech companies, offering insights to researchers, policymakers, regulators, financial reports users, investors, environmental union, employees, clients and society.
Originality/value
This paper is novel because it is unique in evaluating the sustainability practices in FinTech and non-FinTech firms.
In the context of fierce competition, the development of lasting relationships with clients is becoming increasingly crucial. The quality of this relationship is a decisive part of the exchange in which mutual trust is one of its fundamental pillars. In the context of services, customer trust may be directed towards the company itself (organizational trust) and/or to its employees (interpersonal trust). Most of the actual research focuses on one or the other of the two targets of trust, but rarely on both at the same time. The objective of this article is to highlight the ambivalence of customer trust towards small and medium-sized enterprises service provider and to propose a conceptual model of its determinants. This research is based on a sample of 300 bank customers chosen randomly. Results show that the relational behaviour of personnel in contact is the determinant of interpersonal and organizational trust. However, reputation is the main factor that contributes towards the development of organizational trust.
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