AI-Driven FinTech Innovation and Corporate Financial Sustainability: Evidence from FinTech Firms in ASEAN Emerging Markets

Abstract

This study investigates the impact of AI-driven FinTech innovation on corporate financial sustainability, focusing on FinTech firms operating in ASEAN emerging markets. Drawing on the Resource-Based View (RBV) and dynamic capabilities theory, it conceptualizes artificial intelligence–enabled financial technologies as strategic capabilities that enhance firms’ long-term financial resilience. Using an unbalanced panel dataset of ASEAN FinTech firms, the study employs fixed-effects panel regression to examine the direct effect of AI-driven FinTech innovation and the moderating role of firm size. The results indicate that AI-driven FinTech innovation positively and significantly enhances corporate financial sustainability, while firm size strengthens this relationship, suggesting that larger firms are better positioned to leverage AI-based innovations. In addition, leverage negatively affects financial sustainability, whereas firm age and growth exert positive effects. These findings remain robust after controlling for firm and year fixed effects. This study contributes firm-level evidence from emerging markets and extends RBV and dynamic capabilities theory to the context of AI-driven financial innovation, offering relevant implications for managers and policymakers.