Research Progress on the Impact of Social Media on Capital Markets
Information is a pivotal element in the functioning of capital markets.The manner and efficiency of infor-mation dissemination are crucial for the effective operation of these markets.As an emerging information intermediary,social media's decentralized dissemination profoundly impacts capital markets.Currently,social media platforms serve as significant sources of information and outlets for investor sentiment,exerting substantial influence on other market partici-pants.Given the importance of social media,this paper systematically reviews research on its impact on capital markets,providing insights for future studies.Firstly,this paper analyzes the theoretical role of information intermediaries in capital markets and explains how so-cial media,as an information intermediary,affects the information dissemination process.In capital markets,the informa-tion asymmetry between investors and entrepreneurs creates a demand for information intermediaries.Information can be directly disseminated to investors through media such as financial reports and press releases or indirectly through interme-diaries.This paper divides the information dissemination process into four stages:company disclosure,dissemination me-dia,investor reaction,and management response,and puts forward problems to be solved at each stage.Secondly,the paper elaborates on the concept,types,and main characteristics of social media.Since its inception,although the core characteristics have remained unchanged,the term has evolved into social media through several itera-tions.Social media encompasses a broad range of online communication platforms,varying widely in form and function.As an emerging information intermediary,social media shares similarities and differences with traditional intermediaries,particularly in dissemination mechanisms,source channels,and timeliness.Thirdly,the paper reviews literature according to the four stages of capital market information dissemination.At the company disclosure stage,research shows that social media enhances the flexibility of disclosure content and form,pro-viding more personalized opportunities,but it may also potentially manipulate information to mislead investors.At the dis-semination media stage,existing literature examines differences in the speed of dissemination and target audience across social media platforms,as well as its impact on analysts,fund managers,and regulatory authorities.At the investor reac-tion stage,scholars generally agree that social media improves information acquisition of investors,but there is contro-versy over whether it enhances information integration of investors,thus exhibiting"collective intelligence".At the man-agement response stage,research indicates that social media increases the likelihood of investor misunderstandings and communication crises,prompting careful response strategies from management.Additionally,social media can play a role in corporate governance,but public pressure may increase managerial short-termism.Finally,this paper summarizes existing research and proposes research directions.Firstly,social media enriches the forms of company disclosure and dissemination,offering both complementary and substitutive relationships with other market participants.While there have been some studies,it remains unsystematic,suggesting multiple perspectives for future investigation.Secondly,as an emerging information intermediary,social media reduces information acquisition costs for investors,but its impact on information integration costs and market efficiency is still debated,requiring further study.Thirdly,social media significantly affects corporate response strategies and governance,yet current research on re-sponse strategies is sparse,indicating a need for more systematic exploration.
Social MediaInformation DisclosureCapital MarketEfficient Market
万方数据
维普
