Better to hear all parties: Understanding the impact of homophily in online financial discussion

作者：

Highlights：

• We investigate the impacts of homophily in online financial discussion on investor judgments, investment decisions, and market price efficiency.

• Homophily reduces the accuracy of investor judgments on future stock returns and worsens investment decisions.

• Homophily is associated with weaker immediate price reaction to earnings news and stronger post-earnings announcement drifts, implying reduced market price efficiency.

摘要

•We investigate the impacts of homophily in online financial discussion on investor judgments, investment decisions, and market price efficiency.•Homophily reduces the accuracy of investor judgments on future stock returns and worsens investment decisions.•Homophily is associated with weaker immediate price reaction to earnings news and stronger post-earnings announcement drifts, implying reduced market price efficiency.

论文关键词：Homophily,Social media,Financial market,Investment decision,Textual analysis

论文评审过程：Received 8 September 2021, Revised 17 April 2022, Accepted 16 May 2022, Available online 18 May 2022, Version of Record 21 June 2022.

论文官网地址：https://doi.org/10.1016/j.elerap.2022.101159