Information disclosure source, investors’ searching and stock price crash risk

Feng He, Yaqian Feng and Jing Hao

Economics Letters, 2022, vol. 210, issue C

Abstract: We examine how different information disclosure sources could affect investors’ online searching on financial market information asymmetry. Using a sample of 2,715 listed firms in the Chinese stock market over the period of 2011–2019, we find that certain information disclosure sources, such as traditional media news, company announcements or social media news, could strengthen investors’ online search effect to reduce stock price crash risks. Meanwhile, analyst reports do not have such a moderating effect. These findings are robust to the use of an alternative stock price crash risk measurement. We discover the moderating effect of different information sources on information asymmetry through retail investors’ online searching.

Keywords: Information asymmetry; Crash risk; Investors’ online searching; Chinese stock market (search for similar items in EconPapers)
JEL-codes: G14 G41 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:210:y:2022:i:c:s0165176521004523

DOI: 10.1016/j.econlet.2021.110202

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