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This paper examines the stock market reaction to the recognition of enterprise data resources in the financial statements of Chinese A-share listed companies, following the Ministry of Finance’s mandate effective from 1 January 2024. By incorporating data resources as either intangible assets or inventories, firms introduce new valuation considerations, with investors increasingly viewing these resources as pivotal to corporate innovation and value creation. Our empirical findings reveal a significant positive market reaction to the recognition of data resources, reflecting heightened investor confidence in the potential value of these assets. Further cross-sectional analysis uncovers that non-state-owned enterprises (non-SOEs) and financially constrained firms experience a stronger market reaction, and firms with lower institutional ownership and higher R&D investments similarly exhibit more pronounced reactions. Moreover, our results show that firms recognizing data resources as intangible assets, rather than inventories, receive stronger positive responses, indicating that investors value long-term strategic commitment to data integration. Our findings hold important implications for corporate managers, investors, and regulators.
Jiu et al. (Sat,) studied this question.