Abstract:
Using Internet search and computer text analysis techniques, we empirically investigate the informativeness of Sina Weibo. The results are as follows: (1) Capital market reacts significantly to the Weibo disclosure, indicating its informativeness. (2) The noise in weibo will reduce the capital market’s reaction which caused by weibo disclosure. (3) Weibo disclosure has more effect on the behavior of small investors, and small/new list firms. The results indicate comprehensively that Weibo, as an emerging “We Media”, the disclosure through which is informative, which may lays an empirical foundation for further relative researches.
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