The Adoption of Social Technologies and the Consequences for Financial Markets

42 Pages Posted: 31 Aug 2013 Last revised: 18 Mar 2022

See all articles by Hailiang Chen

Hailiang Chen

HKU Business School, The University of Hong Kong

Byoung-Hyoun Hwang

Nanyang Business School, Nanyang Technological University

Baixiao Liu

Peking University HSBC Business School

Date Written: March 17, 2022

Abstract

An increasing amount of our information, including financial information, is transmitted through social technologies. Social media can provide unique, value-relevant perspectives. Social media can also be a source of noise or misinformation. Our study considers the adoption of social technologies by CEOs and CFOs of S&P 1500 companies. We construct a comprehensive dataset of all information transmitted through this channel. We then use the Securities and Exchange Commission's "embrace" of social media in April 2013 as part of our identification. Our evidence suggests that – on balance – the adoption of social technologies by CEOs and CFOs has improved the information environment.

Keywords: Social Technologies, Executives, Information Environment

JEL Classification: G12, G14, G38, M41, M48

Suggested Citation

Chen, Hailiang and Hwang, Byoung-Hyoun and Liu, Baixiao, The Adoption of Social Technologies and the Consequences for Financial Markets (March 17, 2022). Available at SSRN: https://ssrn.com/abstract=2318094 or http://dx.doi.org/10.2139/ssrn.2318094

Hailiang Chen

HKU Business School, The University of Hong Kong ( email )

K. K. Leung Building
University of Hong Kong
Hong Kong

HOME PAGE: http://www.fbe.hku.hk/people/academic/hailiang-chen

Byoung-Hyoun Hwang (Contact Author)

Nanyang Business School, Nanyang Technological University ( email )

Singapore, 639798
Singapore

Baixiao Liu

Peking University HSBC Business School ( email )

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