Does Fintech Affect Stock Market?

Fintech is technology-driven financial innovation.Due to the rapid development and application of computers,human’s ability to collect and manage information has also been greatly enhanced."Big Data+" has become the new normal in the industry.Technology-driven changes will naturally profoundly affect the stock market.Research on asset prices must take into account new factors.In general,the introduction of computer technology has a beneficial effect on traditional finance,and the rapid development of financial technology platforms has revolutionized the acquisition and dissemination of financial information,which is conducive to value discovery in the capital market.But on the other hand,fintech companies also bring some new risks.The practice of a small number of fintech companies in my country shows that the savage growth under the blessing of technology will cause serious negative externalities.Furthermore,the data that fintech companies rely on is very convergent,and when a large number of fintech companies draw on similar information sources,they may provide a large amount of homogenous content,thereby contributing to systemic risk.Fintech covers a wide range and has few explicit indicators,which has brought some difficulties to the research.At present,there are limitations in the empirical research of Fintech in the academic circles.Fintech is still a "black box",and its mechanism of action is still unclear.However,the iteration speed of financial technology is extremely fast.It is extremely necessary to quantitatively evaluate the progress brought by financial technology and grasp the potential risks of financial technology.The bottom line on systemic financial risk.This paper raises two questions:a)Does fintech affect stock prices,and in what aspects;b)What is the mechanism of fintech and what are its advantages.In this regard,this paper gives the definition of the fintech information platform,obtains the list of Chinese fintech companies through the crawler,and further obtains the news reports released by the fintech information platform.Then,based on a great number of existing literature and relevant theories,I build some models to explore the influences of fintech on the stock market in the views of both individual and cross-sections stocks,which is embodied in the risk of stock price crash and the degree of stock price linkage.In addition,this paper uses a large number of text analysis methods to programmatically classify the huge public information in the capital market in the past ten years,and builds new indicators,so as to further explore the impact mechanism of fintech on the fintech information platform,and deeply explore the impact of emerging technologies on the fintech information platform.The "enabling" effect brought by the financial industry.This paper shows the empirical analysis that Fintech can alleviate stock price crash risk and reduce the degree of stock price co-movement.The main mechanism of fintech affecting stock market is to provide financial information provider with better information processing ability.These conclusions help to improve our understanding of fintech and have great implications for the development and regulation of fintech.The full text is divided into six chapters,the first chapter explains the research background.Chapters 2 and 3 theoretically analyze the impact and mechanism of FinTech by reviewing existing literature and classical economic theories.Chapters 4 and 5 conduct empirical analysis in the views of both individual cross-section.Chapter 6 comes up with some policy recommendations based on the empirical conclusions of this paper,which point out the key of the reality.This paper shows three innovations.The first is to start from the perspective of information transmission,to examine the role of fintech on stock prices through the information level of fintech,and to propose a better entry point for empirical research on fintech;the second is to analyze the text through text analysis.The method classifies a large amount of text information,so as to explore the mechanism of fintech;the third is to study the impact of fintech from two levels of individual stocks and cross-sections,which enriches the perspective of empirical research.