Abstract

http://ssrn.com/abstract=2426221
 


 



The Aggregate Effects of Decentralized Knowledge Production: Financial Bloggers and Information Asymmetries in the Stock Market


Gregory D. Saxton


State University of New York at Buffalo

Ashley E. Anker


State University of New York (SUNY) at Buffalo

April 30, 2013

Journal of Communication, vol. 63, no. 6, pp. 1054-1069, 2013

Abstract:     
New media have markedly enhanced individuals’ capacity to produce and disseminate original knowledge; however, the literature has not extensively examined the broad effects of such decentralized production processes. The current study thus focuses on a unique context — the stock market — in which it is possible to test the aggregate impact of blog-based information production. Using data on 150 top financial bloggers and stock returns from the S&P 500, this study supports the hypothesis that financial blogging activity diminishes harmful information asymmetries between key market investors. This study thus adds to the “media effects” literature, highlights the societal relevance of bloggers, and shows how economic concepts and financial market settings can be employed for powerfully testing communication theories.

Number of Pages in PDF File: 26

Keywords: blogs, economics, financial markets, knowledge production, information asymmetry, information environment, media effects, stock prices, new media

JEL Classification: G10, G14, M41

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Date posted: April 19, 2014  

Suggested Citation

Saxton, Gregory D. and Anker, Ashley E., The Aggregate Effects of Decentralized Knowledge Production: Financial Bloggers and Information Asymmetries in the Stock Market (April 30, 2013). Journal of Communication, vol. 63, no. 6, pp. 1054-1069, 2013. Available at SSRN: http://ssrn.com/abstract=2426221

Contact Information

Gregory D. Saxton (Contact Author)
State University of New York at Buffalo ( email )
Department of Communication
Buffalo, NY 14222
United States
HOME PAGE: http://www.acsu.buffalo.edu/~gdsaxton
Ashley E. Anker
State University of New York (SUNY) at Buffalo ( email )
12 Capen Hall
Buffalo, NY 14260
United States
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