{"title":"The informativeness of investor communication with corporate insiders: Evidence from China","authors":"Qingbin Meng, Congyi Ju, Qinghua Huang, Song Wang","doi":"10.1111/infi.12425","DOIUrl":null,"url":null,"abstract":"<p>This study examines the informativeness of individual investors in the stock market. Specifically, we study the <i>EasyInteraction</i> Platform administrated by the Shenzhen Stock Exchange of China. This public platform allows individual investors to openly ask corporate insiders questions and requires the corporate insiders to answer these questions. Conducting a content analysis on the investor–firm conversations, we find that the negative tones in the investor questions have a permanent negative effect on stock prices, followed by a lower degree of earnings surprises. This effect is robust after controlling for media coverage as well as firm-specific financial variables, and after ruling out short-sellers and the firm competitors as the source of the negative messages. Overall, our results suggest that individual investors disclose value-related information through public communications with corporate insiders.</p>","PeriodicalId":46336,"journal":{"name":"International Finance","volume":"26 2","pages":"189-207"},"PeriodicalIF":1.3000,"publicationDate":"2022-11-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Finance","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/infi.12425","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
This study examines the informativeness of individual investors in the stock market. Specifically, we study the EasyInteraction Platform administrated by the Shenzhen Stock Exchange of China. This public platform allows individual investors to openly ask corporate insiders questions and requires the corporate insiders to answer these questions. Conducting a content analysis on the investor–firm conversations, we find that the negative tones in the investor questions have a permanent negative effect on stock prices, followed by a lower degree of earnings surprises. This effect is robust after controlling for media coverage as well as firm-specific financial variables, and after ruling out short-sellers and the firm competitors as the source of the negative messages. Overall, our results suggest that individual investors disclose value-related information through public communications with corporate insiders.
期刊介绍：
International Finance is a highly selective ISI-accredited journal featuring literate and policy-relevant analysis in macroeconomics and finance. Specific areas of focus include: · Exchange rates · Monetary policy · Political economy · Financial markets · Corporate finance The journal''s readership extends well beyond academia into national treasuries and corporate treasuries, central banks and investment banks, and major international organizations. International Finance publishes lucid, policy-relevant writing in macroeconomics and finance backed by rigorous theory and empirical analysis. In addition to the core double-refereed articles, the journal publishes non-refereed themed book reviews by invited authors and commentary pieces by major policy figures. The editor delivers the vast majority of first-round decisions within three months.
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