Can microblogging information disclosure reduce stock price synchronicity? Evidence from China

We study the relationship between stock price synchronicity and information disclosure of firms listed in the Chinese stock market, using hand-collected data on firms’ official microblogging content in Sina Weibo, a popular microblogging service in China. We find that after controlling for the impac...

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Main Authors: Zhou, D., Zhao, Y., Lin, P., Li, B., Cheung, Adrian
Format: Journal Article
Published: Sage Publications 2018
Online Access:http://hdl.handle.net/20.500.11937/74251
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author Zhou, D.
Zhao, Y.
Lin, P.
Li, B.
Cheung, Adrian
author_facet Zhou, D.
Zhao, Y.
Lin, P.
Li, B.
Cheung, Adrian
author_sort Zhou, D.
building Curtin Institutional Repository
collection Online Access
description We study the relationship between stock price synchronicity and information disclosure of firms listed in the Chinese stock market, using hand-collected data on firms’ official microblogging content in Sina Weibo, a popular microblogging service in China. We find that after controlling for the impact of traditional media, the number of Weibo tweets is related negatively to stock price synchronicity, indicating that stock prices incorporate firm-specific information disclosed in the firm’s official Weibo. Number of microblogging fans can strengthen this negative relationship. Our result is robust to alternative measures of stock price synchronicity, microblogging information disclosure, and to endogeneity issues. JEL Classification: G14, G15.
first_indexed 2025-11-14T11:00:00Z
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institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T11:00:00Z
publishDate 2018
publisher Sage Publications
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spelling curtin-20.500.11937-742512019-05-09T09:08:48Z Can microblogging information disclosure reduce stock price synchronicity? Evidence from China Zhou, D. Zhao, Y. Lin, P. Li, B. Cheung, Adrian We study the relationship between stock price synchronicity and information disclosure of firms listed in the Chinese stock market, using hand-collected data on firms’ official microblogging content in Sina Weibo, a popular microblogging service in China. We find that after controlling for the impact of traditional media, the number of Weibo tweets is related negatively to stock price synchronicity, indicating that stock prices incorporate firm-specific information disclosed in the firm’s official Weibo. Number of microblogging fans can strengthen this negative relationship. Our result is robust to alternative measures of stock price synchronicity, microblogging information disclosure, and to endogeneity issues. JEL Classification: G14, G15. 2018 Journal Article http://hdl.handle.net/20.500.11937/74251 10.1177/0312896218796884 Sage Publications restricted
spellingShingle Zhou, D.
Zhao, Y.
Lin, P.
Li, B.
Cheung, Adrian
Can microblogging information disclosure reduce stock price synchronicity? Evidence from China
title Can microblogging information disclosure reduce stock price synchronicity? Evidence from China
title_full Can microblogging information disclosure reduce stock price synchronicity? Evidence from China
title_fullStr Can microblogging information disclosure reduce stock price synchronicity? Evidence from China
title_full_unstemmed Can microblogging information disclosure reduce stock price synchronicity? Evidence from China
title_short Can microblogging information disclosure reduce stock price synchronicity? Evidence from China
title_sort can microblogging information disclosure reduce stock price synchronicity? evidence from china
url http://hdl.handle.net/20.500.11937/74251