A Survey on Alternative Data in Finance and Business: Emerging Applications and Theory Analysis

19 Pages Posted: 8 Mar 2023 Last revised: 8 May 2023

See all articles by Yunchuan Sun

Yunchuan Sun

International Institute of Big Data in Finance, Business School, Beijing Normal University

Lu Liu

International Institute of Big Data in Finance, Business School, Beijing Normal University

Ying Xu

International Institute of Big Data in Finance, Business School, Beijing Normal University

Xiaoping Zeng

International Institute of Big Data in Finance, Business School, Beijing Normal University

Yufeng Shi

Shandong University

Ajith Abraham

Chung-Ang University

Date Written: June 28, 2022

Abstract

In business and finance sector, traditional datasets such as financial statements, SEC filings, etc., are generally distributed officially to statement what an enterprise operating is about. Whereas, alternative data are different, which are gathered from non-traditional sources, generated either by individuals, business processes, or sensors. Alternative data can be used to evaluate an enterprise with more in-depth, more accurate and complete, and more sufficiently timely insights from different views than traditional data. In practice, alternative data have been leveraged by businesses and investors to extract valuable insights, generate business opportunities, improve deal sourcing, and guide investment decisions. Besides, academia researches in this field are becoming increasingly hot and popular in latest years, though it is still in the infancy, and more researches are needed to go into both finding new investment strategies and exploring new theories in finance innovation and business management. In this work, we try to provide an overall investigation of academia researches on the emerging applications of alternative data. We review more than 100 papers published from 2015 to 2021 according to the category of the alternative data and their applications in finance and business. Also, we propose an analysis on the roles of alternative data in view of finance theory and business management, and we argue that alternative data would play an important role in financial markets as a bridge leading the financial markets to more efficient.

Keywords: Alternative Data, Behavioral Data, Commercial Data, Sensing Data, Credit Report, Enterprise Management, Finance Innovation, Investment, Price Prediction, Risk Evaluation, Efficient Market Hypothesis

Suggested Citation

Sun, Yunchuan and Liu, Lu and Xu, Ying and Zeng, Xiaoping and Shi, Yufeng and Abraham, Ajith, A Survey on Alternative Data in Finance and Business: Emerging Applications and Theory Analysis (June 28, 2022). Available at SSRN: https://ssrn.com/abstract=4148628 or http://dx.doi.org/10.2139/ssrn.4148628

Yunchuan Sun (Contact Author)

International Institute of Big Data in Finance, Business School, Beijing Normal University ( email )

19 Xinjiekouwai St
Haidian District
100875, Beijing, Beijing 100875
China
+861058806092 (Phone)

Lu Liu

International Institute of Big Data in Finance, Business School, Beijing Normal University ( email )

No.19 Xinwai Str
Haidian District
Beijing, 100875
China

Ying Xu

International Institute of Big Data in Finance, Business School, Beijing Normal University ( email )

No.19 Xinwai Str
Haidian District
Beijing, 100875
China

Xiaoping Zeng

International Institute of Big Data in Finance, Business School, Beijing Normal University ( email )

No.19 Xinwai Str
Haidian District
Beijing, 100875
China

Yufeng Shi

Shandong University ( email )

27 Shanda Nanlu
South Rd.
Jinan, SD Shandong 250100
China

Ajith Abraham

Chung-Ang University ( email )

Korea

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
253
Abstract Views
799
Rank
218,137
PlumX Metrics