Publication Type

Journal Article

Version

publishedVersion

Publication Date

12-2011

Abstract

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.

Keywords

Blog visibility, Value relevance, Trading Volume, Word of Mouth communication WOM

Discipline

Communication Technology and New Media | Computer Sciences | Technology and Innovation

Research Areas

Information Systems and Management

Publication

Journal of Business Research

Volume

64

Issue

12

First Page

1361

Last Page

1368

ISSN

0148-2963

Identifier

10.1016/j.jbusres.2010.12.025

Publisher

Elsevier

Copyright Owner and License

Publisher

Additional URL

https://doi.org/10.1016/j.jbusres.2010.12.025

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