How Do the Global Stock Markets Influence One Another? Evidence from Finance Big Data and Granger Causality Directed Network

Tang, Yong; Xiong, Jason; Luo, Yong; Zhang, Yicheng

doi:10.1080/10864415.2018.1512283

Cited by 53 publications

(25 citation statements)

References 81 publications

(70 reference statements)

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“…The above discussion based on different area of business. Whatever, some studies (such as [6,11,14,22,23,41,45,54,68,71,73,75,83,85] focused different perspectives of financial services. Still, the contribution on this area is not expanded.…”

Section: Literature Reviewmentioning

confidence: 99%

Current landscape and influence of big data on finance

2020

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In the age of technological innovation, various types of data are available with the advance of information technologies, and data is seen as one of the most valuable commodities in managing automation systems [13, 68]. In this sense, financial markets and technological evolution have become related to every human activity in the past few decades. Big data technology has become an integral part of the financial services industry and will continue to drive future innovation [12]. Financial innovations are also considered the fastest emerging issues in financial services. More specifically, they cover a variety of financial businesses such as online peer-to-peer lending, crowd-funding platforms, SME finance, wealth management and asset management platforms, trading management, crypto-currency, money/remittance transfer, mobile payments platforms, and so on. All of these services create thousands of pieces of data every day. Therefore,

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Section: Literature Reviewmentioning

confidence: 99%

Current landscape and influence of big data on finance

2020

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“…See for example, Kenett et al (2010;2012a;2012b; [10][11][12][13], [14] and Wang et al (2018) [15]. Other method adopts other correlation to measure the network, such as mutual information-based network [1,16,17], connectedness-based network [18,19], cointegration-based network [20][21][22], and entropy-based network [23][24][25].…”

Section: Introductionmentioning

confidence: 99%

“…Therefore, the relationship in the financial and economic framework is likely to be directed, i.e., asymmetric. Various directed and weighted networks have been used in the financial markets [20,21,24,25]. Moreover, what both Pearson correlation coefficients and partial correlation coefficients describe the linear correlation, the financial and economic market is a complex and non-linear system, however.…”

Section: Introductionmentioning

confidence: 99%

The impact of financial contagion on real economy-An empirical research based on combination of complex network technology and spatial econometrics model

Chen

Hao

2020

PLoS ONE

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This study presents financial network indicators that can be applied to inspect the financial contagion on real economy, as well as the spatial spillover and industry aggregation effects. We propose to design both a directed and undirected networks of financial sectors of top 20 countries in GDP based on symbolized transfer entropy and Pearson correlation coefficients. We examine the effect and usefulness of the network indicators by newly using them instead of the original Dow Jones financial sector as explanatory variables to construct the higher-order information spatial econometric models. The results demonstrate that the estimated accuracies obtained from both the two networks are improved significantly compared with the spatial econometric model using the original data. It indicates that the network indictors are more effective to capture the dynamic information of financial systems. And meanwhile, the accuracy based on the directed network is a little higher than the undirected network, which indicates the symbolized transfer entropy, i.e. the directed and weighted network, is more suitable and effective to reflect relationships in the financial field. In addition, the results also show that under the global financial crisis, the co-movement between financial sectors of a country/region and the global financial sector as well as between financial sectors and real economy sectors is increased. However, some sectors in particular Utilities and Healthcare are impacted slightly. This study tries to use the financial network indicators in modeling to study contagion channels on the real economy and the industry aggregation effects and suggest how network indicators can be practically used in financial fields.

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“…The discussion presented above is based on the various extents of business. Some studies [45][46][47] have focused on different areas of financial services, but the contributions to this issue have not yet been expanded upon enough. Our current study intends to enlarge big data's contribution to finance.…”

Section: Literature Reviewmentioning

confidence: 99%

Identifying Big Data’s Opportunities, Challenges, and Implications in Finance

et al. 2020

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One of the latest innovations in business and technology is the use of big data, as daily data are generated by billions of events. The big data issue is now considered in the accountants and finance professionals’ field as one of the most important sources for the analysis of financial products and services. This study is very innovative, with our research aiming to identify the opportunities, challenges, and implications of big data in the finance area. It is our purpose to find competitive advantages in terms of the extent to which big data brings visible benefits, also pointing out the challenges that a company may face in this field, such as cases of customers’ data security or customer satisfaction processes. The identification of this kind of dynamics allows us to draw conclusions on the advantages of big data based on these analyses and big data’s deep impact on finance. In particular, big data is now commonly used by financial institutions and banks for analytical purposes in financial market contexts. We conducted an exploratory survey of the existing literature to highlight such connections. In the last part of our study, we also propose directions for future research.

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How Do the Global Stock Markets Influence One Another? Evidence from Finance Big Data and Granger Causality Directed Network

Cited by 53 publications

References 81 publications

Current landscape and influence of big data on finance

Current landscape and influence of big data on finance

The impact of financial contagion on real economy-An empirical research based on combination of complex network technology and spatial econometrics model

Identifying Big Data’s Opportunities, Challenges, and Implications in Finance

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