 The impact of internet articles on investor trading decisions by investor types: Evidence from Korean stock marketHyunkwon Cho, Ga-Young Choi and Joonil Lee Finance Research Letters, 2023, vol. 56, issue C Abstract: This study investigates the impact of internet articles, such as blogs or internet community posts, on investors’ trading decisions in response to uncertain news (i.e., rumors). Leveraging the unique disclosure requirement in Korea, which verifies rumors via firm disclosures, we are able to identify trading activities associated with rumors. We find that internet article coverage affects individual investors’ decisions, but not those of institutional investors. Moreover, the post-disclosure returns deteriorate only for individual investors with internet article coverage. Overall, these results suggest that internet articles adversely affect individual investors’ trading decisions on rumors, resulting in a wealth transfer from individual investors to institutional investors. Keywords: Internet articles; Social media; Blog; Information environment; Inquiry disclosure; Mandatory disclosure; Rumor; Investment decision; Institutional investors; Individual investors (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323004828 DOI: 10.1016/j.frl.2023.104110 Access Statistics for this article Finance Research Letters is currently edited by R. Gençay More articles in Finance Research Letters from Elsevier |
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