The democratization of investment research and the informativeness of retail investor trading

Autor:	Stanimir Markov, Michael H. Farrell, Russell Jame, T. Clifton Green
Rok vydání:	2022
Předmět:	Economics and Econometrics Exploit Financial economics Strategy and Management Investment (macroeconomics) Identification (information) Order (exchange) Accounting Social media Democratization Business Finance Stock (geology) Financial market participants
Zdroj:	Journal of Financial Economics. 145:616-641
ISSN:	0304-405X
DOI:	10.1016/j.jfineco.2021.07.018
Popis:	We study the effects of social media on the informativeness of retail trading. Our identification strategy exploits the editorial delay between report submission and publication on Seeking Alpha, a popular crowdsourced investment research platform. We find the ability of retail order imbalances to predict the cross-section of stock returns and cash-flow news increases sharply in the intraday post-publication window relative to the pre-publication window. The findings are robust to controlling for report tone and stronger for reports authored by more capable contributors. The evidence suggests that recent technology-enabled innovations in how individuals share information help retail investors become better informed.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::426dfe10789083881689c54464c8fa59 https://doi.org/10.1016/j.jfineco.2021.07.018 Zobrazit plný text záznamu Full Text from ScienceDirect