Does Big Data Influence the Efficiency of the Capital Markets
Published: 2018
Author(s) Name: Rajesh Kumar Singh, S. K. Mitra and Sumeet Gupta |
Author(s) Affiliation: Indian Institute of Management Raipur, Chhattisgarh, India.
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Abstract
This paper examines the adaptation of the ‘big data’ strategies in the developed capital markets and
its effect on the efficiency of the capital markets. The big data strategy and algorithms use the
power of high capacity computing to affect the high frequency trading which improves the efficiency
in the market. However, high frequency trading also poses many regulatory challenges for the Security and Exchange Commission. Social media and microblogs affect the risk appetite of the investors. The sentiment and decision-making pattern of the investors are influenced by the continuous flows of
the information through the social media which affects the capital markets.
Keywords: N.A.
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