Information Disclosure And Short Term Stock Returns Of Listed Companies

This is the age of 5G communication,information transmission has undergone earth-shaking changes in speed,breadth and methods.The Internet has gradually become an important platform for investors to obtain market information.At the same time,the rapid development of "we media" has also made many listed companies and brokerage research institutes register their official "we media" accounts,such as public accounts,Weibo,Xiaohongshu and Stock Bar,to carry out online interaction with the majority of investors and transfer information.Social media has gradually become an important information hub connecting investors and listed companies.On January 21,2011,Tencent launched wechat,an instant messaging service for smart terminals.Wechat was gradually popularized in 2013.Since 2017,listed companies and securities brokers have started to register official public accounts.The we-media communication of listed companies has gradually entered a stage of rapid development and become an important platform for information disclosure.In addition,in the secondary market,as China’s capital market is still not perfect,rational investors only account for a small part of the market,and there are a large number of retail investors,who focus more on shortterm returns.According to statistics,there are about 170 million retail investors in China’s A-share market,of which less than 5% have more than 500,000 yuan in their accounts.With limited access to and understanding of information,retail investors’ trading activities are vulnerable to being influenced by information posted on public accounts.The emergence of the official official accounts of listed companies greatly reduces the cost of investors to obtain information,so that a large amount of idiotypic information can enter the stock price through investors’ trading behavior and be reflected in the short-term stock returns.This paper selects the listed companies of Shanghai and Shenzhen 300 from2012 to 2021 as the research sample.Firstly,it studies the relationship between the opening of wechat public accounts of listed companies and the short-term stock returns,and analyzes the changes of the short-term stock returns before and after the opening of wechat public accounts.Next,the paper studies the relationship between the quality of information disclosure of wechat official accounts of listed companies and short-term stock returns.Finally,text information is divided into six types by text analysis to compare the influence of different information types on short-term stock returns.The results show that the short-term stock returns of listed companies have increased after the opening of public accounts,but the volatility is greater,indicating that the company’s idiosyncrasies have entered the stock price through public accounts.The short-term earnings of public accounts of listed companies are positively correlated with the quality of information disclosure,indicating that improving the quality of information disclosure can improve the short-term earnings of companies.The positive information of public accounts of listed companies is positively correlated with short-term earnings,but then there will be a reversal,neutral and negative information is negatively correlated with short-term earnings.The positive information of external public accounts is positively correlated with short-term earnings,while the neutral and negative information is negatively correlated with short-term earnings.This shows that when the company performs poorly in the secondary market,the company can maintain its stock price through the guidance of more positive information.Based on literature review,this paper will be the first study on wechat public account information disclosure and short-term stock returns in China.The research results are of certain reference value.For listed companies,they should adapt to the development tide of the we-media era,make good use of the information disclosure platform of we-media,improve the quality of information disclosure,reduce information asymmetry with investors,and promote the overall development of the stock market.For investors to make good use of the wechat public account,the information platform,have a screening of information,improve information identification and analysis ability,make rational and correct investment decisions.