Place Your Bets? The Value of Investment Research on Reddit's Wallstreetbets

• 成果类型: Article
• 署名作者: Bradley, Daniel; Hanousek, Jan; Jame, Russell; Xiao, Zicheng
• 署名单位: State University System of Florida; University of South Florida; University of Memphis; University of Kentucky
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhad098
• 发表日期: 2024
• 页码: 1409
• 关键词: cross-section; news; recommendations; predictability; analysts; POSTINGS; returns; CROWDS

摘要

We examine the value of due diligence recommendations on Reddit's Wallstreetbets (WSB) platform. Before the Gamestop (GME) short squeeze, recommendations are significant predictors of returns and cash-flow news. This predictability is eliminated post-GME. Post-GME, the fraction of reports emphasizing price-pressure or attention-grabbing stocks dramatically increases, and the decline in informativeness is concentrated in these reports. Similarly, retail trade informativeness is particularly strong following DD reports in the pre-GME period, but not post-GME. Our findings are consistent with the view that the Gamestop event altered the culture of WSB, leading to a deterioration in investment quality that adversely affected smaller investors.