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Financial leverage and performance: the case of financial technology firms

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Over the past years, the financial technology industry has gained considerable attention from policy makers and regulators, market participants, as well as the general public. Despite the interest of these stakeholders, academic research on the topic is scarce and we aim to extend the literature by examining the impact of financial leverage on the performance of FinTech firms. Using a sample of 146 U.S. FinTech firms operating in ten market segments over the period 2000–2016, we find that financial leverage has a negative impact on profitability and risk-adjusted performance. We also reveal that the magnitude of the influence of leverage depends on firm age. The results are robust to the use of a cross-country sample, alternative model specifications and estimation approaches.

Original languageEnglish
Number of pages19
JournalApplied Economics
Early online date27 Apr 2021
Publication statusEarly online - 27 Apr 2021


  • accepted_manuscript (1)

    Rights statement: This is an Accepted Manuscript of an article published by Taylor & Francis in Applied Economics on 27 April 2021, available online:

    Accepted author manuscript (Post-print), 730 KB, PDF document

    Due to publisher’s copyright restrictions, this document is not freely available to download from this website until: 27/10/22

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