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Social media, financial reporting opacity, and return comovement : evidence from Seeking Alpha
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Ding, Rong, Zhou, Hang and Li, Yifan (2020) Social media, financial reporting opacity, and return comovement : evidence from Seeking Alpha. Journal of Financial Markets , 50 . 100511. doi:10.1016/j.finmar.2019.100511 ISSN 1386-4181.
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WRAP-social-media-opacity-comovement-Alpha-Rong-2019.pdf - Accepted Version - Requires a PDF viewer. Available under License Creative Commons Attribution Non-commercial No Derivatives 4.0. Download (2005Kb) | Preview |
Official URL: http://dx.doi.org/10.1016/j.finmar.2019.100511
Abstract
In this study, we develop a model to analyze the interplay between the coverage of a firm on social media, financial reporting opacity, and stock return comovement. Our model predicts a negative association between social media coverage and comovement as social media facilitates the incorporation of firm-specific information into stock price. It also predicts that the effect of social media coverage on comovement is more pronounced among firms with higher financial reporting opacity. Using data from Seeking Alpha, the largest crowdsourced social media platform that provides “third-party generated” financial analysis in US, we find results consistent with the model's predictions.
| Item Type: | Journal Article | ||||||||
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| Subjects: | H Social Sciences > HG Finance H Social Sciences > HM Sociology |
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| Divisions: | Faculty of Social Sciences > Warwick Business School | ||||||||
| Library of Congress Subject Headings (LCSH): | Financial statements, Investment analysis -- United States, Investments , Social media, Crowdsourcing | ||||||||
| Journal or Publication Title: | Journal of Financial Markets | ||||||||
| Publisher: | Elsevier BV | ||||||||
| ISSN: | 1386-4181 | ||||||||
| Official Date: | September 2020 | ||||||||
| Dates: |
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| Volume: | 50 | ||||||||
| Article Number: | 100511 | ||||||||
| DOI: | 10.1016/j.finmar.2019.100511 | ||||||||
| Status: | Peer Reviewed | ||||||||
| Publication Status: | Published | ||||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||||
| Date of first compliant deposit: | 19 December 2019 | ||||||||
| Date of first compliant Open Access: | 19 December 2019 | ||||||||
| Related URLs: |
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