Shall We Talk? The Role of Interactive Platforms in Corporate Communication

Date
2020-08-16
Authors
Lee, Charles M. C.
Zhong, Qinlin
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
We examine the causes and consequences of a new form of interactive corporate communication. Between 2010 and 2017, Chinese investors used an online platform to ask corporate managers over 2.5 million questions, the vast majority of which received a reply within two weeks. Our analyses show that: (a) most investor questions reflect difficulties in integrating information that is already in the public domain; (b) the level of platform activity varies by market condition and company performance; and (c) higher activity levels are associated with decreases in cost-of-capital and increases in market liquidity. Collectively, our results suggest interactive platforms can reduce information processing costs and improve market price formation.
Description
Keywords
Financial Disclosure, Information Processing Costs, Cost Of Capital, Market Liquidity
Citation
Rights
Access Rights
Email libraryada-l@lists.hawaii.edu if you need this content in ADA-compliant format.