How digital technology improves the high-quality development of enterprises and capital markets: A liquidity perspective

Guangqiang Liu and Boyang Liu

Finance Research Letters, 2023, vol. 53, issue C

Abstract: This paper finds that the digitalization has a positive impact on stock liquidity, especially those lack analyst follow-up or low online media attention. We use “Made in China 2025” as an exogenous shock to conduct difference-in-differences estimation to improve causality. We discuss a possible mechanism based on classical information asymmetry theory. Our results are robust to a battery of tests based on different specifications and alternative measures. Overall, this research evaluates the significance of digital transformation for enterprises and has implications for enhancing capital market liquidity.

Keywords: Digital transformation; Information asymmetry; Information disclosure quality; Stock liquidity (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:53:y:2023:i:c:s1544612323000570

DOI: 10.1016/j.frl.2023.103683

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