{"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":1,"journal":{"name":"Accounts of Chemical Research","volume":null,"pages":null},"PeriodicalIF":16.4000,"publicationDate":"2022-11-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Accounts of Chemical Research","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/infi.12425","RegionNum":1,"RegionCategory":"化学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"CHEMISTRY, MULTIDISCIPLINARY","Score":null,"Total":0}
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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：
Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance.
Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.
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