Does Monetary Incentive Lead to Better Stock Recommendations on Social Media?

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)peer-review

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Author(s)

Related Research Unit(s)

Detail(s)

Original languageEnglish
Title of host publication38th International Conference on Information Systems (ICIS 2017)
Subtitle of host publicationTransforming Society with Digital Innovation
PublisherAssociation for Information Systems
Pages4586-4597
Volume7
ISBN (Print)9781510853690, 9780996683159
Publication statusPublished - 11 Dec 2017

Publication series

NameICIS: Transforming Society with Digital Innovation

Conference

Title38th International Conference on Information Systems (ICIS 2017)
LocationCOEX, Convention and Exhibition Center
PlaceKorea, Republic of
CitySeoul
Period10 - 13 December 2017

Abstract

Social media not only is a new channel to obtain financial market information but also becomes the venue for investors to share and exchange investment ideas. We examine the performance consequences of providing monetary incentive to amateur analysts on social media and its implications for crowd-sourced equity research. We find that monetary incentive is effective in increasing the amount of content outputs but does not lead to better stock recommendations. Additional analysis suggests that monetary incentive results in wider stock coverage, a sign of increased content diversity. This study contributes to the understanding of incentive mechanisms for social media communities in the financial context.

Research Area(s)

  • Blog, Investment, Monetary incentive, Stock market, Wisdom of crowds

Bibliographic Note

Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

Citation Format(s)

Does Monetary Incentive Lead to Better Stock Recommendations on Social Media? / Chen, Hailiang; Hu, Yu Jeffrey; Huang, Shan.

38th International Conference on Information Systems (ICIS 2017): Transforming Society with Digital Innovation. Vol. 7 Association for Information Systems, 2017. p. 4586-4597 (ICIS: Transforming Society with Digital Innovation).

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)peer-review