Monetary Incentive and Stock Opinions on Social Media

• 成果类型: Article
• 署名作者: Chen, Hailiang; Hu, Yu Jeffrey; Huang, Shan
• 署名单位: University of Hong Kong; University System of Georgia; Georgia Institute of Technology; University System of Georgia; Georgia Institute of Technology; University System of Georgia; Georgia Institute of Technology; Massachusetts Institute of Technology (MIT); University of Washington; University of Washington Seattle
• 刊物名称: JOURNAL OF MANAGEMENT INFORMATION SYSTEMS
• ISSN/ISSBN: 0742-1222
• DOI: 10.1080/07421222.2019.1598686
• 发表日期: 2019
• 页码: 391-417
• 关键词: propensity score; performance; reputation; FRAMEWORK; Sentiment; earnings; rewards; wisdom; IMPACT; noise

摘要

Not only is social media a new channel to obtain financial market information, it has also become a venue for investors to share and exchange investment ideas. We examine the performance consequences of providing monetary incentive to both existing and new amateur analysts on social media and its implications for online investor communities. We find that monetary incentive is effective in increasing the amount of content output and generating more interest from the community, but it leads to neither better nor worse stock recommendations. Additional analysis suggests that monetary incentive results in wider stock and industry coverage, a sign of increased content diversity. This study contributes to the understanding of the role of monetary incentive in stimulating the sharing of value-relevant information by investors in social media communities.