Investor–firm interactions versus investor–investor interactions: Which enhances investor learning better?

Abstract

This paper investigates the impact of different forms of information interaction on investor learning. The empirical results show that investor–firm interactions are positively associated with the investor learning effect, whereas investor–investor interactions exert a negative impact. The mechanism analysis suggests that acquiring information from the supply side (firms) rather than the demand side (investors) reduces noise content, investor disagreement, and crash risk, thereby enhancing investor learning. This study enhances our understanding of how improving the market information environment, refining corporate disclosure practices, and strengthening investor protection can enhance investor learning in China.