Abstract
In this study, we examine how the effectiveness of satellite imagery affects stock price efficiency in the international capital market. With advancements in remote-sensing technology, sophisticated international investors have better access to detailed and real-time indicators of firm fundamentals through satellite imagery since the last decade. Our findings indicate that the availability of satellite imagery effectively mitigates the inefficient B-share discount in China by potentially addressing information asymmetry. Furthermore, we highlight the role of satellite data as a valuable complement to traditional information sources as well as its ability to monitor companies with unreliable disclosures. This study contributes to the literature on big data and capital market efficiency, while also offering policy implications for the technological advancement of the financial industry and the high-quality opening of the Chinese capital market.
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