| Authors |
Farrell, Green, Jame, Markov |
| Journal |
Journal of Financial Economics |
| Year |
2022 |
| Type |
Published Paper |
| Abstract |
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. |
| Keywords |
Investment research, Seeking alpha, retail investors, informed trading |
| URL |
https://www.sciencedirect.com/science/article/abs/pii/S0304405X21004050 |
| Tags |
Archival Empirical |
Asset Pricing, Trading Volume and Market Efficiency |
Financing- and Investment Decisions (Individual) |
Social Network Structure
|