Value relevance of blog visibility

• Main Authors: HU, Nan, LIU, Ling, Tripathy, Arindam, YAO, Lee J.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: Blog visibility; Value relevance; Trading Volume; Word of Mouth communication WOM; Communication Technology and New Media; Computer Sciences; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/sis_research/1355; https://ink.library.smu.edu.sg/context/sis_research/article/2354/viewcontent/Value_Rel_Blog_pv.pdf
• Institution: Singapore Management University

This study empirically examines the effect of a non-traditional information source, namely a firm's blog visibility on the capital market valuation of firms. After controlling for earnings, book value of equity and other value relevant variables, such as traditional media exposure, R&D spending, and advertising expense, we find a positive association between a firm's blog visibility and its capital market valuation. In addition, we find blog visibility Grange causes trading, not vice versa. Our findings indicate that non-traditional information sources such as blogs help disseminate information and influence consumers' investment decisions by capturing their attention.