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Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 52, No. 4, pp.933-953
ISSN: 1226-1874 (Print)
Print publication date 31 Aug 2023
Received 13 Feb 2023 Revised 19 Jun 2023 Accepted 04 Jul 2023
DOI: https://doi.org/10.17287/kmr.2023.52.4.933

개인투자자 간 회계정보 공유가 주식시장에 미치는 영향: 인터넷 종목토론실 텍스트 분석을 이용하여

Gun Lee ; Jae Eun Shin
(First Author) Accounting Department, Changwon National University gunlee@changwon.ac.kr
(Corresponding Author) School of Industrial Management, Korea University of Technology & Education(KOREATECH) jeshin@koreatech.ac.kr
Retail Investors’ Information Sharing and the Role of Accounting Information: Evidence from Internet Stock Message Boards


Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This study examines the role of accounting information posted in Naver stock message boards. With the growth of Internet use and the ease of access to stock information, many people are posting and reading messages in Internet stock message boards. However, internet message postings are anonymous and the content of the messages can vary from value-relevant information to random chatters. Based on the premise that accounting data is value-relevant, among all the messages, we expect that messages with accounting information would induce retail investors’ stock trading and lead to more stock trading and greater stock volatility. Using Python-based web crawler to collect all messages posted in Naver stock message boards, we sort messages into those that contain accounting words and those that do not. Our empirical analyses show that messages containing accounting information are positively related to both stock trading volume and stock price volatility. These results can be interpreted as stock message boards serving as a channel of word-of-mouth and retail investors being influenced by messages with accounting information. This study extends the literature on the stock market influence of message boards and helps understand the information processing of retail investors.

Keywords:

Retail investors, Internet stock message boards, Accounting information, Textual analysis

Acknowledgments

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea(NRF-2021S1A5A8068157).

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∙ The author Gun Lee is an associate professor at Accounting Department, Changwon National University. His research interests are corporate governance and corporate disclosure.

∙ The author Jae Eun Shin is an assistant professor at School of Industrial Management, Korea University of Technology & Education. Her research interests include earnings informativeness, earnings management, and corporate governance.