Social media, financial reporting opacity, and return comovement: Evidence from Seeking Alpha
Hang Zhou and
Journal of Financial Markets, 2020, vol. 50, issue C
In this study, we develop a model to analyze the interplay between the coverage of a firm on social media, financial reporting opacity, and stock return comovement. Our model predicts a negative association between social media coverage and comovement as social media facilitates the incorporation of firm-specific information into stock price. It also predicts that the effect of social media coverage on comovement is more pronounced among firms with higher financial reporting opacity. Using data from Seeking Alpha, the largest crowdsourced social media platform that provides “third-party generated” financial analysis in US, we find results consistent with the model's predictions.
Keywords: Social media; Comovement; Seeking Alpha; Financial reporting opacity (search for similar items in EconPapers)
JEL-codes: G11 G12 G14 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:finmar:v:50:y:2020:i:c:s1386418119300126
Access Statistics for this article
Journal of Financial Markets is currently edited by B. Lehmann, D. Seppi and A. Subrahmanyam
More articles in Journal of Financial Markets from Elsevier
Bibliographic data for series maintained by Catherine Liu ().