Impact of Corporate Governance on Fintech Disclosure Index: Evidence from Pakistani Banks

Abstract

Rapid digital transformation and technological progress have made Financial Technology (FinTech) an essential component of a contemporary banking industry. This study's primary objective is to investigate how Pakistani banks' FinTech Disclosure Index (FDI) is affected by corporate governance and firm-specific factors. The study looks into the impact of board meetings, foreign directors, firm size, return on assets (ROA), market-to-book ratio (MTBR), dividend per share (DPS), and capital ratio (CAP) on FinTech disclosure practices. Secondary data were acquired from the yearly reports of ten major Pakistani commercial banks for the period 2015-2024, resulting in 100 observations. The study used panel data analysis by using a Fixed Effect Model to analyse the relationships among the variables. The empirical findings reveal that Foreign Directors, Firm Size, and ROA have a positive and significant impact on the FinTech Disclosure Index, while DPS and CAP have a negative and significant relationship with the FinTech Disclosure Index. However, the impact of Board Meetings and MTBR on FinTech disclosure was found to be insignificant. According to the report, corporate governance and firm-specific features are useful in improving transparency and FinTech-related disclosure practices in the Pakistani banking sector. The findings offer valuable information to the policymakers and regulators and banking institutions on the significance of governance quality and digital reporting practices in fostering transparency and technological development.

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