Value Relevance of Blog Visibility
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.
Blog visibility, Value relevance, Trading Volume, Word of Mouth communication WOM
Communication Technology and New Media | Computer Sciences
Information Systems and Management
Journal of Business Research
HU, Nan; LIU, Ling; Tripathy, Arindam; and YAO, Lee J..
Value Relevance of Blog Visibility. (2011). Journal of Business Research. 64, (12), 1361-1368. Research Collection School Of Information Systems.
Available at: http://ink.library.smu.edu.sg/sis_research/1355