Customer ratings and firm value: Evidence from big data analysis of online consumption in China

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-01-27 DOI:10.1016/j.frl.2025.106867

Qianqian Du , Dongmin Kong , Yanglin Li , Kuicheng Ye

引用次数: 0

Abstract

This study employs big data from JD.com, a leading online consumption platform in China, to investigate the impact of customer product ratings on the value of listed firms. Our findings indicate that a long-short strategy, buying firms with high abnormal customer ratings and selling those with low abnormal ratings, yields significant abnormal returns. Notably, we observe that poor customer ratings negatively correlate with future stock prices. Mechanism analysis suggests that customer ratings can predict future unexpected earnings and revenues. Overall, these findings indicate that consumer ratings provide unique insights into firms’ fundamentals and stock pricing in the Chinese stock market.

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

期刊介绍： Finance Research Letters welcomes submissions across all areas of finance, aiming for rapid publication of significant new findings. The journal particularly encourages papers that provide insight into the replicability of established results, examine the cross-national applicability of previous findings, challenge existing methodologies, or demonstrate methodological contingencies. Papers are invited in the following areas: Actuarial studies Alternative investments Asset Pricing Bankruptcy and liquidation Banks and other Depository Institutions Behavioral and experimental finance Bibliometric and Scientometric studies of finance Capital budgeting and corporate investment Capital markets and accounting Capital structure and payout policy Commodities Contagion, crises and interdependence Corporate governance Credit and fixed income markets and instruments Derivatives Emerging markets Energy Finance and Energy Markets Financial Econometrics Financial History Financial intermediation and money markets Financial markets and marketplaces Financial Mathematics and Econophysics Financial Regulation and Law Forecasting Frontier market studies International Finance Market efficiency, event studies Mergers, acquisitions and the market for corporate control Micro Finance Institutions Microstructure Non-bank Financial Institutions Personal Finance Portfolio choice and investing Real estate finance and investing Risk SME, Family and Entrepreneurial Finance