Information Asymmetry, Individual Investor Attention and Social Media Analysts’ Information Production

52 Pages Posted: 18 Feb 2021

See all articles by Changyi Chen

Changyi Chen

National University of Singapore (NUS)

Bin Ke

National University of Singapore

Ding Li

Nanjing University

Khim Yong Goh

National University of Singapore (NUS)

Date Written: January 29, 2021

Abstract

This study examines how information asymmetry and individual investor attention affect the information production of self-proclaimed analysts on social media (social media analysts or SMAs thereafter). Due to individual investors’ low sophistication and limited attention, SMAs are more likely to provide research for stocks with higher individual investor attention, but there is no evidence that SMAs follow stocks with higher information asymmetry, even though they are expected to provide more profit opportunities. Higher individual investor attention leads SMAs to issue lower quality stock recommendations. We find no evidence that SMAs who provide higher quality research survive longer on social media.

Keywords: information asymmetry, individual investor attention, social media analyst

JEL Classification: M41, G41

Suggested Citation

Chen, Changyi and Ke, Bin and Li, Ding and Goh, Khim Yong, Information Asymmetry, Individual Investor Attention and Social Media Analysts’ Information Production (January 29, 2021). Available at SSRN: https://ssrn.com/abstract=3775405 or http://dx.doi.org/10.2139/ssrn.3775405

Changyi Chen (Contact Author)

National University of Singapore (NUS) ( email )

BIZ2 01-01
1 Business Link
Singapore, 119245
Singapore

Bin Ke

National University of Singapore ( email )

Mochtar Riady Building, BIZ 1, #07-53
15 Kent Ridge Drive
Singapore, 119245
Singapore
+6566013133 (Phone)

Ding Li

Nanjing University ( email )

Nanjing, Jiangsu 210093
China

Khim Yong Goh

National University of Singapore (NUS) ( email )

15 Computing Drive
Singapore, 117418
Singapore
65-65162832 (Phone)
65-67791610 (Fax)

HOME PAGE: http://www.comp.nus.edu.sg/~gohky

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
119
Abstract Views
464
rank
292,359
PlumX Metrics