Abstract

http://ssrn.com/abstract=160170
 
 

Citations (25)



 


 



Cheap Talk on the Web: The Determinants of Postings on Stock Message Boards


Peter D. Wysocki


University of Miami - School of Business Administration

November 1998

University of Michigan Business School Working Paper No. 98025

Abstract:     
This paper examines the cross-sectional and time-series determinants of message-posting volume on stock message boards on the Web. I test whether variation in message-posting volume is just noise or is related to underlying firm characteristics and stock market activity. Using a sample of over 3,000 stocks listed on Yahoo! message boards, I find that cumulative posting volume is, on average, highest for firms with extreme past returns and accounting performance, high market capitalization, high price-earnings and market-to-book ratios, high volatility and trading volume, high analyst following and low institutional holdings. Changes in daily posting volume are associated with earnings-announcement events and daily changes in stock trading volume and returns. Overnight message-posting volume is found to predict changes in next day stock trading volume and returns. Rational and behavioral explanations for the observed pattern in message-posting activity are discussed.

Number of Pages in PDF File: 35

JEL Classification: G12, G14

working papers series





Download This Paper

Date posted: April 20, 1999  

Suggested Citation

Wysocki, Peter D., Cheap Talk on the Web: The Determinants of Postings on Stock Message Boards (November 1998). University of Michigan Business School Working Paper No. 98025. Available at SSRN: http://ssrn.com/abstract=160170 or http://dx.doi.org/10.2139/ssrn.160170

Contact Information

Peter D. Wysocki (Contact Author)
University of Miami - School of Business Administration ( email )
Department of Accounting - K/E 308
5250 University Drive
Coral Gables, FL 33146-6531
United States
305-284-8618 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 5,352
Downloads: 815
Download Rank: 15,633
Citations:  25

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.266 seconds