Information Asymmetry, Individual Investor Attention and Social Media Analysts’ Information Production

2021 ◽  
Author(s):  
Changyi Chen ◽  
Bin Ke ◽  
Ding Li ◽  
Khim Yong Goh
Keyword(s):  
Social Media ◽  
Information Asymmetry ◽  
Information Production ◽  
Individual Investor ◽  
Investor Attention

scholarly journals Dynamic Evolution of Safety Regulation of the Ridesharing Industry under Social Media Participation

Symmetry ◽  
2020 ◽  
Vol 12 (4) ◽  
pp. 560
Author(s):  
Qipeng Sun ◽  
Tingzhen Li ◽  
Fei Ma ◽  
Xiaozhuang Guo ◽  
Sijie Wang
Keyword(s):  
Social Media ◽  
Information Asymmetry ◽  
Positive Impact ◽  
Evolutionary Game ◽  
Sharing Economy ◽  
Model Solution ◽  
Social Regulation ◽  
Safety Regulation ◽  
Regulatory Issues ◽  
Safety Regulations

The emergence of ridesharing has spread against the background of the sharing economy. There have been a lot of controversies since the emergence of ridesharing, particularly regarding regulatory issues. The safety regulation of the ridesharing industry involves many parties, including governments, platform companies, and society at large. Currently, because of the influence of information asymmetry, it increases the uncertainty of governments’ regulation effect and the difficulty of making regulation measures. Meanwhile, social media, one of the most important forces of social regulation, has not paid enough attention to playing an appropriate role in the safety regulation of the ridesharing industry. Therefore, this study constructs an evolutionary game model between governments and platform companies that concerns the safety regulations of ridesharing passengers under social media participation. The influence path of social media is explored by model solution and numerical simulation. Our results indicate that social media participation has a positive impact on this safety regulation. Specifically, social media participation could reduce governments’ regulatory costs and encourage it to strictly regulate. The exposure of social media could bring losses to platform companies involved and promote platform companies’ investments in improving passengers’ safety. This study provides a decision basis for governments to introduce social media in the safety regulation of the ridesharing industry.

Digitalization and migration: the role of social media and migrant networks in migration decisions. An exploratory study in Nigeria

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chinedu Obi ◽  
Fabio Bartolini ◽  
Marijke D’Haese
Keyword(s):  
Social Media ◽  
Information Asymmetry ◽  
Structural Equation ◽  
Equation Model ◽  
Content Type ◽  
Migrant Networks ◽  
Awareness Campaigns ◽  
Using Data ◽  
And Migration

Purpose This paper aims to explore the connectivity between social media use, access to migrant networks, information asymmetry and migration intentions. Design/methodology/approach The study was conducted using data from individuals living in Nigeria and analysed with a generalized structural equation model, which is rare for this kind of research. Findings The authors find a dual mediating role of the social media and the migrant networks in facilitating migration, i.e. reducing the threshold cost required to migrate and introducing a bias in terms of information asymmetry. While social media and access to migrant networks directly increase migration intentions, this changes when incomplete information is provided. People who use social media and their migrant networks for information are more likely to have information about destination countries than information on the transit risk. Social implications The study adds valuable insights for designing awareness campaigns aimed at reducing irregular migration. Originality/value This study contributes to the understanding of the intersection of migration and digitalization

Information Asymmetry and Investor Valuations of Initial Public Offerings: Two Dimensions of Organizational Reputation as Stock Market Signals

2019 ◽  
Vol 16 (4) ◽  
pp. 945-964
Author(s):  
Yang Liu ◽  
Peng Cheng ◽  
Zhe OuYang ◽  
Ao Wang
Keyword(s):  
Information Asymmetry ◽  
Initial Public Offerings ◽  
Initial Public Offering ◽  
Two Dimensions ◽  
Negative Effects ◽  
Investor Attention ◽  
Public Offerings ◽  
Organizational Reputation ◽  
Public Offering ◽  
Organizational Value

ABSTRACTThe uncertainty and information asymmetry that surround initial public offering firms (IPOs) often introduce difficulties for potential investors to discern organizational value, thereby leading to ‘underpricing’. Using the signaling theory, we investigate the role of organizational reputation in the underpricing of IPOs. We analyze 463 initial public offerings in China from the period of 2010 to 2016 and find that being known for quality and generalized favorability dimensions of reputation are negatively related with underpricing on the first day of trading. In addition, we find that the negative effects of organizational reputation on underpricing are mediated by investor attention.

scholarly journals Investor Attention and Corporate Innovation Performance: Evidence from Web Search Volume Index of Chinese Listed Companies

Mathematics ◽  
2021 ◽  
Vol 9 (9) ◽  
pp. 930
Author(s):  
Nian Li ◽  
Chunling Li ◽  
Runsen Yuan ◽  
Muhammad Asif Khan ◽  
Xiaoran Sun ◽  
...  
Keyword(s):  
Economic Development ◽  
Information Asymmetry ◽  
Listed Companies ◽  
Agency Cost ◽  
Innovation Performance ◽  
Volume Index ◽  
Investor Attention ◽  
Search Volume ◽  
Corporate Innovation ◽  
Chinese Listed Companies

Leveraging from the online search index of Chinese listed companies from 2012 to 2018, we empirically test the relationship between investors’ attention and corporate innovation performance for the first time. The main results are as follows: (1) investors’ attention significantly improves listed companies’ innovation performance, which is reflected in the increase of patent applications. This indicates that investors’ active information collection behaviour affects China’s economic development by promoting enterprise innovation. (2) This paper’s conclusion remains intact after a battery of robustness checks, such as alternative measures of key variables and empirical specifications and a series of endogenous treatment. (3) The mechanisms tests show that: “information asymmetry”, “financing constraint”, and “agency cost” are supported. In other words, with the increase of investors’ attention, not only the information asymmetry is reduced, which greatly improved the information environment of the capital market, but also the external financing constraints of enterprises are alleviated. The opportunistic management behaviour is effectively suppressed, thus motivating the corporate innovation incentives and improving the corporate innovation of input, output and quality. (4) Further research shows that investor attention to listed companies also improves the efficiency of capital allocation. This paper’s conclusion shows that investors’ initiative information acquisition behaviour can improve enterprises innovation performance, thus providing a driving force for China’s economic development.

Web-based financial reporting, social media and information asymmetry: the case of Saudi Arabia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Foued Khlifi
Keyword(s):  
Social Media ◽  
Information Asymmetry ◽  
Financial Reporting ◽  
Information Disclosure ◽  
Weighted Average ◽  
Online Information ◽  
Web Based ◽  
Content Type ◽  
Bid Ask Spread ◽  
Social Media Platforms

Purpose This paper aims to examine the effect of Web-based financial reporting and social media platforms on the proxies of information asymmetry in the Saudi Stock Exchange. Design/methodology/approach The sample of this paper consists of 133 Saudi listed non-financial companies for the year 2019. Web-based disclosure level was measured using 25 items, and the social media platforms examined in this study are Facebook, Twitter and LinkedIn. The information asymmetry proxies are measured using the relative spread and the time-weighted average bid-ask spread. Findings The empirical results have shown that there is a negative and significant relation between Web-based financial reporting and the adoption of social media platforms and the proxies of information asymmetry. Indeed, the relative spread and the time-weighted average bid-ask spread decreased with increased Web-based reporting levels. Among three platforms (Facebook, Twitter and LinkedIn), the results show that only the use of Twitter as a channel for information disclosure has a negative and significant effect on information asymmetry proxies. Consequently, in the Saudi context, the authors demonstrate that the assumptions of the agency, stewardship and signaling theories are supported. Also, results reveal that the effect of information disclosure through websites and social media on reducing information asymmetry is stronger for large companies than small companies. Practical implications The paper provides new insights into the role played by websites and social media platforms in the reduction of the information asymmetry in the stock market. Consequently, investors and regulatory authorities in the Saudi financial market must give great importance to online information disclosure and its implications for lowering information asymmetry. This empirical study informs regulators in Saudi Arabia to conduct the better practice of Web-based and social media financial reporting and to regulate the current practice of information disclosure. Besides, the obtained results have the potential to convince firms’ managers to improve online information disclosure to benefit from the reduction in information asymmetry. Originality/value Unlike previous studies, this study investigates, simultaneously, the effect of Web-based and social media information disclosure on the proxies of information asymmetry in a developing economy. In addition, the hypotheses of this study are developed based on a set of theories (the agency, signaling and stewardship theories), to verify the applicability of these three theories in the Saudi context.

Investor attention and advisor social media interaction

2014 ◽  
Vol 22 (4) ◽  
pp. 261-265 ◽  
Author(s):  
Tao Guo ◽  
Michael Finke ◽  
Barry Mulholland
Keyword(s):  
Social Media ◽  
Investor Attention ◽  
Media Interaction
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