This paper aims to probe the influence of innovation spillovers in the artificial intelligence (AI) and financial technology (Fin-tech) industries on the value of the internet of things (IoT) companies. Python was utilized to download public information from Yahoo Finance, and then the GARCH model was used to extract the fluctuations of cross-industry innovation spillovers. Next, the Fama–French three-factor model was used to explore the interactive changes between variables. The panel data regression analysis indicates that the more firms accept innovation spillovers from other industries, the better the excess return; however, this effect differs because of industrial attributes and the environmental changes induced by COVID-19. Additionally, this study finds that investing in large-cap growth stocks of IoT firms is more likely to yield excess returns. Finally, the study yields lessons for policy leverage to accelerate the upgrading and transformation of innovation-interactive industries by referring to the practices of Singapore and South Korea.

This research employs Capital Asset Pricing Model and foreign exchange exposure theory to explain how the value of financial stocks is affected by the home country cryptocurrency. Previous literature proposed that financial stocks were related to the economic or individual financial ratio, but rarely discussed the impact of a cryptocurrency variable in the digital economy. This paper presents specific findings to prove that cryptocurrency development causes structural change in the financial industry, by examining 67,166 panel data observations from China and Taiwan markets. We offer the following important conclusions: 1. Financial stocks in the China market suffer significantly higher impacts from home country cryptocurrency exposure than the Taiwan market. 2. Financial stocks in the China market are more greatly shocked by the CAPM three factors variables than the Taiwan market. 3. There are significant differences between the two financial markets. 4. The dynamics of the adjustment process of cryptocurrency evolution and the monetary system are key solutions for both markets.

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This study employs information economics and the financial intermediary theory to explore the influences of private information in virtual communities and financial technology (fintech) derived from virtual currency on financial stocks. The paper conducts robust analyses on 67,166 data observations of the stock markets in China and Taiwan and finds that virtual currency development causes a structural change in the financial industry. The financial stocks in Taiwan are obviously driven by virtual factors, whereas those in China are subject to both pull from substantial factors and push from virtual factors. The research findings also suggest that the non-fundamental herding behavior driven by private information interferes with the value of financial stocks. However, financial innovations boost the competitiveness of the financial industry. It is advised to establish a policy to closely monitor the diffusion of private information and the exchange rate volatility between cryptocurrencies and home currencies to facilitate proactive financial risk management.