A new era of voluntary disclosure? Empirical evidence on how employee postings on social media relate to future corporate disclosures

The Effects of Tax Avoidance News on Employee Perceptions of Managers and Firms: Evidence from Glassdoor.com Ratings

“…Green et al (2019) provide further evidence that their results are driven by employees revealing information about firm fundamentals in their ratings and reviews. Hales, Moon, and Swenson (2018) and Huang, Li, and Markov (2019) also find results consistent with Glassdoor.com employee ratings on business outlook predicting earnings surprises and other income statement information. Similar to our study, Makridis and Zhou (2019) use changes in employee ratings of firms, managers and other variables as a measure of employee perceptions.…”

Online Employer Reviews as a Data Source: A Systematic Literature Review

“…Therefore, I counted them into more than one concept when synthesizing the results of my full-text analysis into distinct concepts [see 47]. However, I did not count determinant analyses [16,17] as separate studies, as they were not within the actual scope of the articles and thus may not be subject to the same rigor as the articles' main analyses. Table 1 provides an overview of the concepts and their frequencies resulting from the analysis of the 28 peer-reviewed articles in my review set.…”

Crowdsourced Financial Analysis and Information Asymmetry at Earnings Announcements

“…Jame et al (2016) find that crowdsourced earnings forecasts available on Estimize.com are incremental to analyst forecasts in predicting future earnings surprises. Evidence in Hales, Moon, and Swenson (2018) suggests that employee outlook, available from employer reviews posted on Glassdoor.com, accurately predicts future firm disclosures. As we mention in the prior section, Blankespoor et al (2014) find that tech firms using Twitter to disseminate earnings news experience reduced information asymmetry.…”

“…While early research suggests that crowdsourced "analysis" on internet bulletin boards is mostly noise (e.g. Antweiler and Frank 2004), more recent research suggests that crowdsourced information is value relevant (Chen et al 2014;Jame et al 2016;Tang 2017;Campbell, DeAngelis, and Moon 2018;Hales, Moon, and Swenson 2018;Bartov, Faurel, and Mohanram 2018). Given the proliferation and relative ease with which anyone can acquire crowdsourced financial analysis, including less sophisticated investors who lack the information acquisition and processing resources of more sophisticated investors, we ask whether crowdsourced financial analysis helps alleviate the information asymmetry problem at earnings announcements.…”