Can online interactions help level the playing field for firms in different regions?

IF 1.1 Q3 BUSINESS, FINANCE

Journal of Accounting Literature Pub Date : 2024-03-01 DOI:10.1108/jal-06-2023-0093

Yuxuan Chang, Xiaoyang Zhao

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引用次数: 0

Abstract

PurposeThis paper examines whether technological changes that promote communications between investors and managers help bridge the gap in the cost of equity capital among firms in different regions.Design/methodology/approachWe use the online interaction platforms of listed firms in China and utilize brokerage presence (BP) to capture the geographic distribution of financial factors. We explore whether online interactions would reduce the cost of equity to a greater extent for firms located in low brokerage presence regions (hereafter “low-BP firms”) than those in high brokerage presence regions (hereafter “high-BP firms”).FindingsWe find low-BP firms benefit more from an improved information environment created by online interactions. We also find that posts about low-BP firms are more value-relevant and useful in processing corporate disclosures. Further, a higher number of interactions significantly enhances more informational efficiency for low-BP firms, and the effect of reducing the gap in financing costs is more pronounced when corporate information is complex.Originality/valueWe conclude that online interactions alleviate geography-induced information frictions and create a relatively level playing field for firms located in all regions.

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在线互动能否为不同地区的企业创造公平的竞争环境？

本文探讨了促进投资者与管理者之间沟通的技术变革是否有助于缩小不同地区企业之间股权资本成本的差距。设计/方法/途径我们利用中国上市公司的在线互动平台，并利用券商影响力（BP）来捕捉金融要素的地理分布。我们探讨了在线互动是否会在更大程度上降低低经纪存在地区企业（以下简称 "低经纪存在地区企业"）的股权成本，而不是高经纪存在地区企业（以下简称 "高经纪存在地区企业"）的股权成本。我们还发现，关于低 BP 公司的帖子在处理公司信息披露方面更有价值，也更有用。此外，互动次数越多，低 BP 公司的信息效率就越高，而当公司信息复杂时，缩小融资成本差距的效果就越明显。原创性/价值我们得出结论，在线互动缓解了地理位置引起的信息摩擦，为所有地区的公司创造了相对公平的竞争环境。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Accounting Literature BUSINESS, FINANCE-

CiteScore

6.50

自引率

0.00%

发文量

期刊介绍： The objective of the Journal is to publish papers that make a fundamental and substantial contribution to the understanding of accounting phenomena. To this end, the Journal intends to publish papers that (1) synthesize an area of research in a concise and rigorous manner to assist academics and others to gain knowledge and appreciation of diverse research areas or (2) present high quality, multi-method, original research on a broad range of topics relevant to accounting, auditing and taxation. Topical coverage is broad and inclusive covering virtually all aspects of accounting. Consistent with the historical mission of the Journal, it is expected that the lead article of each issue will be a synthesis article on an important research topic. Other manuscripts to be included in a given issue will be a mix of synthesis and original research papers. In addition to traditional research topics and methods, we actively solicit manuscripts of the including, but not limited to, the following: • meta-analyses • field studies • critiques of papers published in other journals • emerging developments in accounting theory • commentaries on current issues • innovative experimental research with strong grounding in cognitive, social or anthropological sciences • creative archival analyses using non-standard methodologies or data sources with strong grounding in various social sciences • book reviews • "idea" papers that don''t fit into other established categories.