Does regulatory punishment improve financial media's information intermediary role?

Article Economics

Information disclosure source, investors' searching and stock price crash risk

Feng He et al.

Summary: We investigate how various sources of information disclosure impact investors' online searching behavior in the presence of financial market information asymmetry. Analyzing a sample of 2,715 listed firms in the Chinese stock market from 2011 to 2019, we observe that certain information disclosure sources, such as traditional media news, company announcements, and social media news, enhance investors' online search effectiveness, leading to a reduction in stock price crash risks. However, analyst reports do not exhibit a similar moderating effect. These findings hold true even when an alternative measure of stock price crash risk is employed. Our study reveals the moderating effect of different information sources on information asymmetry through online searching behavior of retail investors.

ECONOMICS LETTERS (2022)

Add to Collection

Article Management

Newspaper Censorship in China: Evidence from Tunneling Scandals

Ole-Kristian Hope et al.

Summary: This article is restricted for research, teaching, and private study purposes only, with commercial use and systematic downloading prohibited without explicit approval from the Publisher. The Publisher does not guarantee the article's accuracy, completeness, merchantability, fitness for a particular purpose, or non-infringement. Descriptions or references to products do not imply endorsement or guarantee.

MANAGEMENT SCIENCE (2021)

Add to Collection

Article Business, Finance