Retail investor attention and corporate innovation in the big data era

Jing Hao

International Review of Financial Analysis, 2023, vol. 86, issue C

Abstract: This paper explores the corporate governance role of retail investor attention from the perspective of corporate innovation. Using a sample of Chinese listed firms from 2011 to 2019, we find that retail investor attention significantly promotes corporate innovation. Thisresult ise robust to a series of robustness checks to address potential endogeneity concerns. I further conclude that the impact of retail investor attention on corporate innovation is mainly through alleviating a firm's financial constraints and deterring agency costs. In addition, such effects are more pronounced in firms with higher media and analyst coverage as well as those with more overconfident CEOs. The results provide empirical evidence of the corporate governance function of individual investors in the current digital era.

Keywords: Investor attention; Corporate innovation; Corporate governance; Chinese market (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:86:y:2023:i:c:s1057521923000029

DOI: 10.1016/j.irfa.2023.102486

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