Social Sciences in China, 2024

Vol. 45, No. 1, 2024

The Capital Market Reaction and the Influencing Mechanism of the

Establishment of the Data Basic Institutional System

(Abstract)

Liu Bai and Zhang Ailian

This study uses a sample of A-share listed companies to investigate the impact of China’s Data Basic Institutional System on capital market reactions and the mechanism by which it exerts influence. The findings reveal that within a 5-day period before and after the policy announcement, listed companies with high data resources experience a significantly higher abnormal return compared to those with low data resources. Moreover, this difference becomes more pronounced as enterprise technology intensity increases. Furthermore, the policy enhances the capital market’s perception of the value of data resources and its potential for generating multiplier effects. Additional tests confirm that post-implementation of the policy, the capital market reevaluates the long-term value of enterprises associated with data resources. This comprehensive examination contributes empirical evidence to support academic research, inform policy formulation, and guide strategic planning in relevant industries.

Keywords: data resources, technology intensity, market value, event study, abnormal return