FinTech regulation and enterprise digital innovation——evidence from China’s regulatory sandbox

Based on the data of A-share listed companies in China from 2016 to 2023, we consider the implementation of the regulatory sandbox project as a quasi-natural experiment to study the impact of FinTech regulation on the digital innovation of enterprises. Research shows that regulatory sandbox will significantly promote enterprise digital innovation. Alleviating financing constraints, attracting patient capital and promoting digital investment are the main potential mechanisms. Further analysis reveals that the positive effect of regulatory sandbox is more obvious in small and medium-sized enterprise, non-state-owned enterprise, high-tech enterprise, and enterprise with high information transparency. This article provides valuable policy implications for optimizing the regulation of FinTech and promoting financial services to support the real economy.