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

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  • Liu, Guangqiang
  • Liu, Boyang

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.

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  • Liu, Guangqiang & Liu, Boyang, 2023. "How digital technology improves the high-quality development of enterprises and capital markets: A liquidity perspective," Finance Research Letters, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:finlet:v:53:y:2023:i:c:s1544612323000570
    DOI: 10.1016/j.frl.2023.103683
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    Cited by:

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    2. Huang, Yuhong & Gao, Yajia, 2023. "Labor protection and the digital transformation of enterprises: Empirical evidence from China's social insurance law," Finance Research Letters, Elsevier, vol. 57(C).

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