Can microblogging information disclosure reduce stock price synchronicity? Evidence from China

Donghua Zhou, Yujie Zhao, Philip T Lin, Bin Li and Adrian (Waikong) Cheung
Additional contact information
Donghua Zhou: School of Accounting, Jiangxi University of Finance and Economics, Nanchang, China
Yujie Zhao: School of Finance, Jiangxi University of Finance and Economics, Nanchang, China
Philip T Lin: Guangdong University of Foreign Studies, Guangzhou, China
Bin Li: Griffith Business School, Griffith University, Nathan, QLD, Australia
Adrian (Waikong) Cheung: Flinders Business, College of Business, Government and Law, Flinders University, Adelaide, SA, Australia

Australian Journal of Management, 2019, vol. 44, issue 2, 282-305

Abstract: We study the relationship between stock price synchronicity and information disclosure of firms listed in the Chinese stock market, using hand-collected data on firms’ official microblogging content in Sina Weibo, a popular microblogging service in China. We find that after controlling for the impact of traditional media, the number of Weibo tweets is related negatively to stock price synchronicity, indicating that stock prices incorporate firm-specific information disclosed in the firm’s official Weibo. Number of microblogging fans can strengthen this negative relationship. Our result is robust to alternative measures of stock price synchronicity, microblogging information disclosure, and to endogeneity issues. JEL Classification: G14, G15

Keywords: Analyst coverage; disclosure; fans following; microblogging; stock price synchronicity (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0312896218796884 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:44:y:2019:i:2:p:282-305

DOI: 10.1177/0312896218796884

Access Statistics for this article

More articles in Australian Journal of Management from Australian School of Business
Bibliographic data for series maintained by SAGE Publications ().