IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v60y2024i4p663-677.html
   My bibliography  Save this article

Data Factor and Financial Market Equilibrium

Author

Listed:
  • Qingduo Zeng
  • Tao Bing
  • Li Li
  • Yang Xu

Abstract

In this paper, we develop a novel asset pricing model in which data factor is incorporated into the fundamental value to explore its impact on financial market equilibrium. It is shown that high precision of data can attenuate the fundamental risk and increase the trading intensity, thus enhancing price informativeness and liquidity along with reducing the cost of capital. Furthermore, we discover that there is a positive relationship between real investment efficiency and the correlation coefficient of data factor with productivity. Our results emphasize the important role of data factor in stock pricing and real investment, as well as reveal the internal impact mechanism of data factor on equilibrium properties, which complement the existing empirical evidences and have significant implications on data application.

Suggested Citation

  • Qingduo Zeng & Tao Bing & Li Li & Yang Xu, 2024. "Data Factor and Financial Market Equilibrium," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 60(4), pages 663-677, March.
    • Handle: RePEc:mes:emfitr:v:60:y:2024:i:4:p:663-677
    DOI: 10.1080/1540496X.2023.2251652
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2023.2251652
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2023.2251652?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:60:y:2024:i:4:p:663-677. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.