Online social networks, media supervision and investment efficiency: An empirical examination of Chinese listed firms

Journal article


Yang, Zonghan, Bass, Tina, Yang, Xiaoping, Andrikopoulos, Panagiotis and Cao, Dongmei 2020. Online social networks, media supervision and investment efficiency: An empirical examination of Chinese listed firms. Technological Forecasting and Social Change. 154, p. 119969. https://doi.org/10.1016/j.techfore.2020.119969
AuthorsYang, Zonghan, Bass, Tina, Yang, Xiaoping, Andrikopoulos, Panagiotis and Cao, Dongmei
Abstract

Prior literature suggests that media reports acting as external supervision improve information transparency and corporate governance leading to increased investment efficiency. This study empirically tests this hypothesis in the context of online social networks by investigating the combined effects of online social networking and media reports on investment efficiency using a sample of Chinese listed firms. Our results show that the interaction of media reports and Tobin's q ratio is negatively related to corporate investment efficiency. However, the introduction of online social networks turns this relationship from a negative to a positive and statistically significant one. The combined factors significantly increase investment efficiency in non-SOEs (State Owned Enterprises) but not in SOEs. We provide evidence that online social networking effectively mitigates the negative effect of media supervision on investment efficiency, further advancing knowledge of the link of external supervision and corporate governance.

KeywordsManagement of Technology and Innovation; Applied Psychology; Business and International Management; Investment psychology; Investment efficiency
Year2020
JournalTechnological Forecasting and Social Change
Journal citation154, p. 119969
PublisherElsevier BV
ISSN0040-1625
Digital Object Identifier (DOI)https://doi.org/10.1016/j.techfore.2020.119969
Web address (URL)http://hdl.handle.net/10545/624557
https://www.elsevier.com/tdm/userlicense/1.0/
hdl:10545/624557
Publication dates22 Feb 2020
Publication process dates
Deposited06 Mar 2020, 09:12
Accepted17 Feb 2020
Rights

© 2020 Elsevier Inc. All rights reserved.

ContributorsZhejiang Yuexiu University of Foreign Language, Coventry University, University of Shanghai for Technology and Science and University of Derby
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