THE EFFECT OF BIG DATA ON STOCK PRICES: AN ANALYSIS ON S&P500 COMPANIES

Abstract

In this study, it is aimed to examine the effect of big data on the stock prices of the companies using big data which is defined as data with high volume, velocity and variety. 82 quarterly data of 10 S&P500 companies using big data and 10 S&P500 companies not using big data in the period between 2003q1-2023q2 were examined within the scope of separate two models by panel data analysis method. In the models, the stock price is the dependent variable whereas operating profit margin, quick ratio, LTDE, accounts receivables turnover rate, beta value and company size are independent variables. As a result of the analysis it is found that the beta value has only a significant (negative) effect on the stock prices of companies using big data whereas the LTDE has a significant (positive) effect only on the stock prices of companies that do not use big data. While the quick ratio has not got any any effect on the stock prices of the companies in both groups; operating profit margin, accounts receivables turnover rate and company size have a significant positive effect on the stock prices of companies that use and do not use big data.