Financial Transparency, Media Coverage, and Momentum in China

Chen, Shu‐Heng; Cao, Jerry; Lin, Kun-Ben; Huang, Jingbo; Zhang, Yubing; Lin, Hairuo

doi:10.1080/1540496x.2020.1825936

Cited by 3 publications

(2 citation statements)

References 51 publications

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“…However, prior researchers mainly focused on the whole market news sentiment or attention; the effects on news reports about specific domains, especially the research reports issued by securities companies, are far from being fully investigated. In China, more than 90% of investors are retail investors, whose investment decisions mainly rely on public information [44,53]. Chen et al [53] pointed out that the Chinese market is dominated by retail investors and financial information is always manipulated.…”

Section: E Role Of Investor Sentimentmentioning

confidence: 99%

“…In China, more than 90% of investors are retail investors, whose investment decisions mainly rely on public information [44,53]. Chen et al [53] pointed out that the Chinese market is dominated by retail investors and financial information is always manipulated. Securities companies probably want to influence individual investor sentiment and subsequently affect stock movements by releasing research reports.…”

Section: E Role Of Investor Sentimentmentioning

confidence: 99%

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The Influence of Research Reports on Stock Returns: The Mediating Effect of Machine-Learning-Based Investor Sentiment

Wang

2021

Discrete Dynamics in Nature and Society

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This paper investigates whether and how the research reports issued by securities companies affect stock returns from the perspective of investor sentiment in China. By collecting research reports and investor comments from a popular Chinese investor community, i.e., East Money, we derive two indices that represent the information contained in research reports: one is the attention of research reports and the other is the average stock rating given by research reports; then we develop an investor sentiment indicator using the machine learning method. Based on behavioral finance theory, we hypothesize that research reports have a significant effect on stock returns and investor sentiment plays a mediating role in it. The empirical analysis results confirm the above hypotheses. Specifically, the average stock rating given by research reports can better predict future stock returns, and investor sentiment plays a partial mediating role in the relationship between stock rating and stock returns.

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Section: E Role Of Investor Sentimentmentioning

confidence: 99%

Section: E Role Of Investor Sentimentmentioning

confidence: 99%

The Influence of Research Reports on Stock Returns: The Mediating Effect of Machine-Learning-Based Investor Sentiment

Wang

2021

Discrete Dynamics in Nature and Society

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ESG Rating Dispersion and Expected Stock Return in China

Xiao

Liu

2023

Emerging Markets Finance and Trade

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Negative Media Tone and Leverage Adjustments

Park,

Cho,

Cho

2024

Korean J Financ Stud

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This paper examines how negative publicity influences firms’ capital structure decision. We find that firms exhibit faster adjustment of capital structure toward the target level after more negative media coverage, advocating the monitoring role of negative media sentiment on corporate behaviors. Further, our finding is significantly stronger for non-chaebol firms. Additional analyses show that the monitoring role is stronger when firms are more scrutinized by outsiders and have better corporate governance. Overall, this paper shows evidence that negative media sentiment could play an effective role in monitoring firms’ capital structure and correcting their inefficiencies.

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Financial Transparency, Media Coverage, and Momentum in China

Cited by 3 publications

References 51 publications

The Influence of Research Reports on Stock Returns: The Mediating Effect of Machine-Learning-Based Investor Sentiment

The Influence of Research Reports on Stock Returns: The Mediating Effect of Machine-Learning-Based Investor Sentiment

ESG Rating Dispersion and Expected Stock Return in China

Negative Media Tone and Leverage Adjustments

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