The Impact of Financial Technologies (FinTech) on Corporate Capital Management and Financial Decision-Making

Abstract

The present study aimed to investigate the impact of financial technology adoption on capital management efficiency and financial decision-making quality in companies operating in Tehran. This study was conducted using a quantitative, applied, descriptive–correlational design employing structural equation modeling. The statistical population consisted of financial managers, accounting managers, financial analysts, and chief financial officers working in medium-sized and large companies in Tehran, Iran. A total of 312 participants were selected using stratified random sampling to ensure adequate representation across industries. Data were collected using a structured questionnaire measuring financial technology adoption, capital management efficiency, and financial decision-making quality, using a five-point Likert scale. Content validity was confirmed by expert evaluation, and construct validity was established using confirmatory factor analysis. Reliability was verified using Cronbach’s alpha and composite reliability coefficients, all exceeding acceptable thresholds. Data analysis was conducted using SPSS version 27 and SmartPLS version 4. Structural equation modeling was used to evaluate measurement validity and test the hypothesized relationships among the constructs, with bootstrapping procedures applied to assess statistical significance and model predictive power. The results of structural equation modeling indicated that financial technology adoption had a significant positive effect on capital management efficiency (β = 0.58, t = 11.74, p < 0.001) and financial decision-making quality (β = 0.47, t = 9.63, p < 0.001). In addition, capital management efficiency had a significant positive effect on financial decision-making quality (β = 0.41, t = 8.92, p < 0.001). Financial technology adoption also demonstrated a significant indirect effect on financial decision-making quality through capital management efficiency, indicating a partial mediating role of capital management. The model explained a substantial proportion of variance in capital management efficiency and financial decision-making quality, confirming the strong explanatory power of financial technology adoption in enhancing corporate financial management outcomes. The findings demonstrate that financial technology adoption significantly enhances corporate capital management efficiency and financial decision-making quality by improving financial information accessibility, optimizing capital allocation, and strengthening financial planning capabilities. Financial technologies enable organizations to improve financial control, reduce financial uncertainty, and support strategic financial decision-making. These results highlight the critical role of financial technology in modern corporate financial management and emphasize the importance of integrating digital financial tools to enhance organizational financial performance and decision-making effectiveness.