“Social Media and Financial Market Transparency” by Dr. Xiaoquan (Michael) Zhang
Dr. Xiaoquan (Michael) Zhang
Department of ISOM
The Hong Kong University of Science and Technology
In this talk, I report several recent projects related to social media's impact on financial market transparency. Using various empirical techniques, ranging from instrumental variables, event studies to field experiments, I examine Wikipedia and Twitter's impact on financial market activities such as insider trading, voluntary disclosure, strategic information dissemination and investors' reaction to such activities. Overall, the results suggest that Internet-enabled collaborative information aggregation on social media helps reduce information inequality in the financial market.