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How does data security promote enterprises' data assetization? Evidence from the implementation of the Data Security Law

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  • Liu, Xiaoshan
  • Du, Houyang

Abstract

This paper examines the influence of data security legislation on the assetization of company data, with particular emphasis on the enactment of China's Data Security Law. This study employs a Difference-in-Differences (DID) method, adopting the data spanning 2018 to 2024, to demonstrate that the legislation substantially improves data assetization by enhancing corporate transparency—diminishing information asymmetry via standardized governance—and augmenting supply chain concentration—consolidating alliances with compliant suppliers to optimize data flows and mitigate risks. Heterogeneity study reveals more pronounced consequences for enterprises engaged in international operations, as they get advantages from conforming to dual regulatory norms to improve global data trust and monetization. This research enhances comprehension of the legal aspects of data assetization, illustrating that effectively crafted rules may reconcile risk mitigation with value generation, guiding politicians and businesses in the data-driven economy.

Suggested Citation

  • Liu, Xiaoshan & Du, Houyang, 2026. "How does data security promote enterprises' data assetization? Evidence from the implementation of the Data Security Law," Finance Research Letters, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finlet:v:90:y:2026:i:c:s1544612325023062
    DOI: 10.1016/j.frl.2025.109057
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