IMPACT OF WIKIPEDIA ON MARKET INFORMATION ENVIRONMENT: EVIDENCE ON MANAGEMENT DISCLOSURE AND INVESTOR REACTION.

Author List: Xu, Sean Xin; Zhang, Xiaoquan (Michael);
MIS Quarterly, 2013, Volume 37, Issue 4, Page 1043-A10.
In this paper, we seek to determine whether a typical social media platform, Wikipedia, improves the information environment for investors in the financial market. Our theoretical lens leads us to expect that information aggregation about public companies on Wikipedia may influence how management's voluntary information disclosure reacts to market uncertainty with respect to investors' information about these companies. Our empirical analysis is based on a unique data set collected from financial records, management disclosure records, news article coverage, and a Wikipedia modification history of public companies. On the supply side of information, we find that information aggregation on Wikipedia can moderate the timing of managers' voluntary disclosure of companies' earnings disappointments, or bad news. On the demand side of information, we find that Wikipedia's information aggregation moderates investors' negative reaction to bad news. Taken together, these findings support the view that Wikipedia improves the information environment in the financial market and underscore the value of information aggregation through the use of information technology.
Keywords: financial market; information aggregation; information environment; management disclosure
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#225 0.310 information environment provide analysis paper overall better relationships outcomes increasingly useful valuable available increasing greater regarding levels decisions viewed relative
#45 0.111 community communities online members participants wikipedia social member knowledge content discussion collaboration attachment communication law virtual membership structures forms activities
#176 0.095 e-commerce value returns initiatives market study announcements stock event abnormal companies significant growth positive using methodology investments period time initiative
#131 0.085 media social content user-generated ugc blogs study online traditional popularity suggest different discourse news making anonymity marketing videos choices page
#30 0.081 market trading markets exchange traders trade transaction financial orders securities significant established number exchanges regulatory structures order traditional stock provides
#173 0.075 effect impact affect results positive effects direct findings influence important positively model data suggest test factors negative affects significant relationship
#213 0.074 assimilation beliefs belief confirmation aggregation initial investigate observed robust particular comparative circumstances aggregated tendency factors examine stages uncertainty instead confidence
#252 0.060 management practices technology information organizations organizational steering role fashion effective survey companies firms set planning focus committees executives managing committee