Document Type
Article
Publication Date
2022
DOI
10.1111/infi.12416
Publication Title
International Finance
Volume
25
Issue
3
Pages
396-415
Abstract
This paper investigates whether and how the development level of a country's digital economy affects stock price synchronicity. The results indicate that countries with high levels of digital economy development exhibit low stock price synchronicity. Additionally, by decomposing stock price synchronicity into systematic and firm‐specific stock return variations, we find that systematic (firm‐specific) variations of stock returns decrease (increase) with the level of a country's digitalization. These findings shed light on the future trend of stock price synchronicity in financial markets around the world and support the information‐based interpretation of stock price synchronicity.
Rights
© 2022 The Authors.
This is an open access article under the terms of the Creative Commons Attribution‐NonCommercial 4.0 International (CC BY-NC 4.0) License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes.
ORCID
0000-0002-9780-6005 (Chen)
Original Publication Citation
Chen, C., Moeini Gharagozloo, M. M., Darougar, L., & Shi, L. (2022). The way digitalization is impacting international financial markets: Stock price synchronicity. International Finance, 25(3), 396-415. https://doi.org/10.1111/infi.12416
Repository Citation
Chen, Chen; Gharagozloo, M. Mahdi Moeini; Darougar, Layla; and Shi, Lei, "The Way Digitalization is Impacting International Financial Markets: Stock Price Synchronicity" (2022). Finance Faculty Publications. 38.
https://digitalcommons.odu.edu/finance_facpubs/38