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Information Sharing for Validation: Evidence from Social Networks Minji Yoo
- Format:
- Book
- Thesis/Dissertation
- Author/Creator:
- Yoo, Minji, author.
- Language:
- English
- Subjects (All):
- Finance.
- Web studies.
- 0272.
- 0508.
- 0646.
- 0501.
- Local Subjects:
- Finance.
- Web studies.
- 0272.
- 0508.
- 0646.
- 0501.
- Physical Description:
- 1 electronic resource (98 pages)
- Contained In:
- Dissertations Abstracts International 86-12A
- Place of Publication:
- Ann Arbor : ProQuest Dissertations and Theses, 2025
- Language Note:
- English
- Summary:
- I propose a new theory for why investors share their information on social networks-validation. Conventional wisdom in the theoretical literature suggests that agents share information to influence market prices, which aligns with the one-way nature of communication channels like corporate disclosures. However, social networks facilitate dynamic, two-way exchanges, allowing investors to receive feedback and refine their beliefs. This interactive environment implies that, in addition to influencing market prices, investors may be seeking validation of their information. For empirical analyses, I classify X.com posts based on two primary incentives: influence and validation, inferring investors' motivations from their language use. The results indicate that investors' information sharing increases when the respective incentive-either influence or validation-is expected to be higher. Influencing Posts tend to rise when investors are looking to close their positions, while Validating Posts are more common in times of market uncertainty. Furthermore, I provide additional evidence supporting the validation effect. First, validation requires more time: Validating Posts take longer to process and incorporate new information from public disclosures compared to Influencing Posts. Second, validation enhances information: Information that emerges from discussions, particularly in the replies to Validating Posts, exhibits a stronger association with prices
- Notes:
- Source: Dissertations Abstracts International, Volume: 86-12, Section: A.
- Advisors: Bushee, Brian J.; Fischer, Paul E. Committee members: Zhou, Frank; Zhu, Christina
- Ph.D. University of Pennsylvania 2025
- Local Notes:
- School code: 0175
- ISBN:
- 9798280761940
- Access Restriction:
- Restricted for use by site license
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