Events

Prof. Richard Crowley
Assistant Professor of Accounting
School of Accountancy
Singapore Management University

We study the democratization of information processing technologies in financial markets by examining the proliferation of open-source algorithms on GitHub that aid in processing SEC filings. We identify over 800 such public projects on GitHub, and document a strong link between democratization via these algorithms and increased algorithm-based acquisition of SEC filings on EDGAR. These algorithms expedite information acquisition and broaden user access particularly for smaller players. Next, we examine the market implications of this democratization. We find that the algorithms available on GitHub lead to improved stock market liquidity, greater retail and algorithmic trading, and improved stock price formation around SEC filings’ release. Our findings highlight the role of open-source algorithms in lowering technology barriers and enhancing market participation in the digital era of financial reporting, especially for investors with limited resources.