Brexit and the Fintech Revolution in Europe: Lessons from the Bulgarian Digital Finance Cluster
Brexit and the Fintech Revolution in Europe: Lessons from the Bulgarian Digital Finance Cluster

Summary/Abstract: This paper provides insights into the drivers of the resilience of the Fintech sector in Emerging Europe by analyzing the performance of 128 Bulgarian Fintech companies in the period 2000-2021. Our results show that larger and better capitalized Fintech companies which outsource their non-core activities and focus on their main competitive strengths tend to have higher operating income and profit. We also find substantial positive real-economy effects as these companies hire actively on the labor market to maintain their growth. The results are primarily driven by the post-Brexit period of 2016-2019. These results have important managerial and policy implications and provide interesting directions for future research.

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