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Bid-Ask Spread in Financial Market: Insights from Search Engine Query Data

Mohd. Anisul Islam & Nahida Islam

Bank Parikrama: A Journal of Banking and Finance2025https://doi.org/10.64204/bp1019-7044/50(1)/a20254article
ABDC C
Weight
0.50

What the paper says

This paper investigates the capabilities of query data for ‘company name’ to provide insights into the movement of bid-ask spread of stock, which is a basic component of transaction cost. The magnitude of bid-ask spread has an impact on measuring trading performance. Results from econometric techniques on a sample of 497 stocks reveal that the bid-ask spread of a stock is correlated with the search volume of the corresponding company name. Furthermore, we find that the stocks of more searched companies are likely to be traded at a lower bid-ask spread. However, if search is motivated by negative sentiment, the bid-ask spread will rise. This finding illustrates that the fluctuation of bid-ask spread can be anticipated by query data that will assist investors to make trading decisions prudently.

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Cite this paper

https://doi.org/https://doi.org/10.64204/bp1019-7044/50(1)/a20254

Or copy a formatted citation

@article{mohd.2025,
  title        = {{Bid-Ask Spread in Financial Market: Insights from Search Engine Query Data}},
  author       = {Mohd. Anisul Islam & Nahida Islam},
  journal      = {Bank Parikrama: A Journal of Banking and Finance},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.64204/bp1019-7044/50(1)/a20254},
}

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Bid-Ask Spread in Financial Market: Insights from Search Engine Query Data

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.