讲座：When a Traditional Information Intermediary Meets a New Channel: Evidence from Analyst Reports Disseminated on Social Media
题 目：When a Traditional Information Intermediary Meets a New Channel: Evidence from Analyst Reports Disseminated on Social Media
嘉 宾：Shubo Zhang, Ph.D. Candidate, the Chinese University of Hong Kong
主持人：夏立军 教授 上海交通大学安泰经济与管理学院
Social media is changing the way how financial information is produced and disseminated. This study examines whether the dissemination of analyst reports, a traditional information intermediary, on social media plays a negative information role in impeding price discovery. Empirically, I find that the stock market overreacts to the analyst reports in the narrow window around the dissemination date and eventually reverses in the subsequent period. The overreaction mainly comes from retail investors, and its outcome is exacerbated given the inferior quality of disseminated reports. Cross-sectional evidence shows that overreaction and reversal are mitigated for firms that have a better information environment and fewer of their shares are traded by retail investors. At the same time, the wisdom of crowd in social media can still help to correct this overreaction under several conditions. Overall, my findings suggest that retail investors do not necessarily benefit from the analyst reports that are made available to them through a social media platform. Social media can give rise to the overconsumption of low-quality information.
Shubo Zhang is a Ph.D. candidate at the Chinese University of Hong Kong. Prior to this, he received his Bachelor's and Master's degrees from Renmin University. His research interests include information intermediates in capital markets (e.g., media, social media, and financial analysts), Chinese institutions, and Big-Data (e.g., textual analysis).