Investor–firm interactions and corporate investment efficiency: Evidence from China

Weidong Xu, Zijun Luo and Donghui Li

Journal of Corporate Finance, 2024, vol. 84, issue C

Abstract: Using a sample of A-listed companies from 2010 to 2020, this paper investigates how investor–firm interactions on Easy Interaction and E-interaction affect corporate investment efficiency measured as investment-to-Tobin's Q sensitivity. The empirical results show that investor–firm interactions are positively correlated with corporate investment efficiency. Possible economic channels include information asymmetry and corporate governance channels. Moreover, investor–firm interactions have a greater impact on firms with fewer financial constraints, higher stock price efficiency, higher media coverage, and higher analyst coverage. When interaction sentiment is more positive, interaction quality is higher, and the topic pertains to technology research and development, the impact of investor–firm interactions is also more pronounced. The main conclusion still holds after adopting a series of endogeneity tests and robustness tests.

Keywords: Investment efficiency; Investor–firm interactions; Social media (search for similar items in EconPapers)
JEL-codes: D83 G14 G31 O30 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:84:y:2024:i:c:s0929119924000014

DOI: 10.1016/j.jcorpfin.2024.102539

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