IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v60y2024ics1544612323012862.html
   My bibliography  Save this article

Investor attention and corporate leverage manipulation

Author

Listed:
  • Guo, Huitao
  • Ye, Binghui
  • Chen, Yuxuan
  • Lin, Weizhen
  • Guan, Xinle
  • Mao, Ruoyu

Abstract

This study indicates that retail shareholders voicing their opinions through social media effectively reducing the leverage manipulation level of enterprises. Mechanism examination reveals that the effectiveness of information environment is vital mechanisms by which retail shareholders mitigate leverage manipulation level. Heterogeneity analysis indicates in companies with low level of confidence, the impact of small and medium-sized shareholders voicing their opinions on mitigating corporate leverage manipulation is more pronounced. The conclusions of this article are not only crucial for innovating corporate governance practices in the digital economy era but also hold significant implications for retail investors in safeguarding their own interests.

Suggested Citation

  • Guo, Huitao & Ye, Binghui & Chen, Yuxuan & Lin, Weizhen & Guan, Xinle & Mao, Ruoyu, 2024. "Investor attention and corporate leverage manipulation," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012862
    DOI: 10.1016/j.frl.2023.104914
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612323012862
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2023.104914?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hong, Ziyang & Liu, Qingfu & Tse, Yiuman & Wang, Zilu, 2023. "Black mouth, investor attention, and stock return," International Review of Financial Analysis, Elsevier, vol. 90(C).
    2. Sanjiv R. Das & Mike Y. Chen, 2007. "Yahoo! for Amazon: Sentiment Extraction from Small Talk on the Web," Management Science, INFORMS, vol. 53(9), pages 1375-1388, September.
    3. Hao, Jing, 2023. "Retail investor attention and corporate innovation in the big data era," International Review of Financial Analysis, Elsevier, vol. 86(C).
    4. Ruihao Ke & Meng Li & Zhejia Ling & Yuan Zhang, 2019. "Social Connections Within Executive Teams and Management Forecasts," Management Science, INFORMS, vol. 65(1), pages 439-457, January.
    5. Faten Tlili & Mustapha Chaffai & Imed Medhioub, 2023. "Investor behavior and psychological effects: herding and anchoring biases in the MENA region," China Finance Review International, Emerald Group Publishing Limited, vol. 13(4), pages 667-681, May.
    6. Muradoglu, Gulnur & Peng, Ni & Qin, Huai & Xia, Chunling, 2024. "Investor attention and market reactions to early announcements in mergers and acquisitions," International Review of Financial Analysis, Elsevier, vol. 91(C).
    7. Ons Triki & Fathi Abid, 2023. "Firms' financial structure with contingent convertible debt, risky debt and multiple growth options," China Finance Review International, Emerald Group Publishing Limited, vol. 13(2), pages 230-262, February.
    8. repec:bla:jfinan:v:59:y:2004:i:3:p:1259-1294 is not listed on IDEAS
    9. Zhenjie Wang & Jiewei Zhang & Hafeez Ullah, 2023. "Exploring the Multidimensional Perspective of Retail Investors’ Attention: The Mediating Influence of Corporate Governance and Information Disclosure on Corporate Environmental Performance in China," Sustainability, MDPI, vol. 15(15), pages 1-33, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liao, Yinchao & Wang, Jun & Liao, Wenru & Shu, Xiaoyang & Li, Zhiyong, 2024. "Buffer or substitute? Corporate financialization and leverage manipulation," Pacific-Basin Finance Journal, Elsevier, vol. 87(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jiang, Honglan & Jiang, Qing, 2024. "How regulatory media information disclosure affects auditor selection–Empirical evidence based on the interaction platform between investors and listed companies," Finance Research Letters, Elsevier, vol. 67(PB).
    2. Zhang, Xiaotao & Li, Guoran & Li, Yishuo & Zou, Gaofeng & Wu, Ji George, 2023. "Which is more important in stock market forecasting: Attention or sentiment?," International Review of Financial Analysis, Elsevier, vol. 89(C).
    3. Papapostolou, Nikos C. & Pouliasis, Panos K. & Nomikos, Nikos K. & Kyriakou, Ioannis, 2016. "Shipping investor sentiment and international stock return predictability," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 96(C), pages 81-94.
    4. Tsukioka, Yasutomo & Yanagi, Junya & Takada, Teruko, 2018. "Investor sentiment extracted from internet stock message boards and IPO puzzles," International Review of Economics & Finance, Elsevier, vol. 56(C), pages 205-217.
    5. Jiao Ji & Oleksandr Talavera & Shuxing Yin, 2018. "The Hidden Information Content: Evidence from the Tone of Independent Director Reports," Working Papers 2018-28, Swansea University, School of Management.
    6. Eryka Probierz & Adam Galuszka & Katarzyna Klimczak & Karol Jedrasiak & Tomasz Wisniewski & Tomasz Dzida, 2021. "Financial Sentiment on Twitter's Community and it's Connection to Polish Stock Market Movements in Context of Behavior Modelling," European Research Studies Journal, European Research Studies Journal, vol. 0(4 - Part ), pages 56-65.
    7. Chen, Cathy Yi-Hsuan & Fengler, Matthias R. & Härdle, Wolfgang Karl & Liu, Yanchu, 2022. "Media-expressed tone, option characteristics, and stock return predictability," Journal of Economic Dynamics and Control, Elsevier, vol. 134(C).
    8. Khim-Yong Goh & Cheng-Suang Heng & Zhijie Lin, 2013. "Social Media Brand Community and Consumer Behavior: Quantifying the Relative Impact of User- and Marketer-Generated Content," Information Systems Research, INFORMS, vol. 24(1), pages 88-107, March.
    9. Thomas Renault, 2020. "Sentiment analysis and machine learning in finance: a comparison of methods and models on one million messages," Digital Finance, Springer, vol. 2(1), pages 1-13, September.
    10. Zheng Yan & Wenqian Robertson & Yaosheng Lou & Tom W. Robertson & Sung Yong Park, 2021. "Finding leading scholars in mobile phone behavior: a mixed-method analysis of an emerging interdisciplinary field," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(12), pages 9499-9517, December.
    11. Zhang, Qixin & Xiang, Zhiqiang, 2024. "New media surveillance, environmental information uncertainty and corporate environmental information disclosure," International Review of Economics & Finance, Elsevier, vol. 95(C).
    12. Paul Brockman & Jim Cicon, 2013. "The Information Content Of Management Earnings Forecasts: An Analysis Of Hard Versus Soft Information," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 36(2), pages 147-174, June.
    13. Liang, Chao & Tang, Linchun & Li, Yan & Wei, Yu, 2020. "Which sentiment index is more informative to forecast stock market volatility? Evidence from China," International Review of Financial Analysis, Elsevier, vol. 71(C).
    14. Ton, Thai & Leung, Henry & Gao, Yang & Schiereck, Dirk, 2024. "Agreeing to disagree: Informativeness of sentiments in internet message boards," Pacific-Basin Finance Journal, Elsevier, vol. 87(C).
    15. Steven Heston & Nitish R. Sinha, 2016. "News versus Sentiment : Predicting Stock Returns from News Stories," Finance and Economics Discussion Series 2016-048, Board of Governors of the Federal Reserve System (U.S.).
    16. He, Feng & Guo, Xinyao & Yue, Pengpeng, 2024. "Media coverage and corporate ESG performance: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 91(C).
    17. Depken II, Craig A. & Zhang, Ying, 2010. "Adverse selection and reputation in a world of cheap talk," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(4), pages 548-558, November.
    18. Gao, Ziqing & Hua, Min & Liu, Heng & Yan, Chao, 2023. "News sentiment and CEO retirement: The impact on firm performance and risk," Research in International Business and Finance, Elsevier, vol. 66(C).
    19. Chu, Gang & Li, Xiao & Zhang, Yongjie, 2022. "Information demand and net selling around earnings announcement," Research in International Business and Finance, Elsevier, vol. 59(C).
    20. Zhenjie Wang & Jiewei Zhang & Hafeez Ullah, 2023. "Exploring the Multidimensional Perspective of Retail Investors’ Attention: The Mediating Influence of Corporate Governance and Information Disclosure on Corporate Environmental Performance in China," Sustainability, MDPI, vol. 15(15), pages 1-33, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012862. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.