• Asia pacific journal of information systems
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• v.24 no.4
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• pp.559-575
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• 2014

Individual investors are increasingly flocking to message boards to seek, clarify, and exchange information. Businesses like Seekingalpha.com and business magazines like Fortune are evaluating, synthesizing, and reporting the comments made on message boards or blogs. In March of 2012, Yahoo! Finance Message Boards recorded 45 million unique visitors per month followed by AOL Money and Finance (19.8 million), and Google Finance (1.6 million) [McIntyre, 2012]. Previous studies in the finance literature suggest that online communities often provide more accurate information than analyst forecasts [Bagnoli et al., 1999; Clarkson et al., 2006]. Some studies empirically show that the volume of posts in online communities have a positive relationship with market activities (e.g., trading volumes) [Antweiler and Frank, 2004; Bagnoli et al., 1999; Das and Chen, 2007; Tumarkin and Whitelaw, 2001]. The findings indicate that information in online communities does impact investors' investment decisions and trading behaviors. However, research explicating the correlation between information on online communities and stock market activities (e.g., trading volume) is still evolving. Thus, it is important to ask whether a volume of posts on online communities influences trading volumes and whether trading volumes also influence these communities. Online stock message boards offer two different types of information, which can be explained using an economic and a psychological perspective. From a purely economic perspective, one would expect that stock message boards would have a beneficial effect, since they provide timely information at a much lower cost [Bagnoli et al., 1999; Clarkson et al., 2006; Birchler and Butler, 2007]. This indicates that information in stock message boards may provide valuable information investors can use to predict stock market activities and thus may use to make better investment decisions. On the other hand, psychological studies have shown that stock message boards may not necessarily make investors more informed. The related literature argues that confirmation bias causes investors to seek other investors with the same opinions on these stock message boards [Chen and Gu, 2009; Park et al., 2013]. For example, investors may want to share their painful investment experiences with others on stock message boards and are relieved to find they are not alone. In this case, the information on these stock message boards mainly reflects past experience or past information and not valuable and predictable information for market activities. This study thus investigates the two roles of stock message boards-providing valuable information to make future investment decisions or sharing past experiences that reflect mainly investors' painful or boastful stories. If stock message boards do provide valuable information for stock investment decisions, then investors will use this information and thereby influence stock market activities (e.g., trading volume). On the contrary, if investors made investment decisions and visit stock message boards later, they will mainly share their past experiences with others. In this case, past activities in the stock market will influence the stock message boards. These arguments indicate that there is a correlation between information posted on stock message boards and stock market activities. The previous literature has examined the impact of stock sentiments or the number of posts on stock market activities (e.g., trading volume, volatility, stock prices). However, the studies related to stock sentiments found it difficult to obtain significant results. It is not easy to identify useful information among the millions of posts, many of which can be just noise. As a result, the overall sentiments of stock message boards often carry little information for future stock movements [Das and Chen, 2001; Antweiler and Frank, 2004]. This study notes that as a dependent variable, trading volume is more reliable for capturing the effect of stock message board activities. The finance literature argues that trading volume is an indicator of stock price movements [Das et al., 2005; Das and Chen, 2007]. In this regard, this study investigates the correlation between a number of posts (information on stock message boards) and trading volume (stock market activity). We collected about 100,000 messages of 40 companies at KOSPI (Korea Composite Stock Price Index) from Paxnet, the most popular Korean online stock message board. The messages we collected were divided into in-trading and after-trading hours to examine the correlation between the numbers of posts and trading volumes in detail. Also we collected the volume of the stock of the 40 companies. The vector regression analysis and the granger causality test, 3SLS analysis were performed on our panel data sets. We found that the number of posts on online stock message boards is positively related to prior stock trade volume. Also, we found that the impact of the number of posts on stock trading volumes is not statistically significant. Also, we empirically showed the correlation between stock trading volumes and the number of posts on stock message boards. The results of this study contribute to the IS and finance literature in that we identified online stock message board's two roles. Also, this study suggests that stock trading managers should carefully monitor information on stock message boards to understand stock market activities in advance.

• Journal of Information Technology Services
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• v.11 no.3
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• pp.191-203
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• 2012

In the stock market, the investors rely on stock information to trade. Good information may stimulate buying, raising the stock prices and the bad information may result in selling, decreasing the stock prices. In terms of the relationship between information and stock prices, stock prices can be viewed as reaction of investors to all the information flowing into the market. The significant increase of web stock news volume is often associated with the significant changes of stock prices. When the web stock news volume for a firm increases significantly, the stock price movement is often oscillatory. This paper attempts to investigate the relationship between volumes of information from Korean web IT and stock prices in Korean stock market. This research shows that when the web stock news volume increases significantly, volatility, trading volumes and rate of returns are increase too. The results of the study provide us with the new clues to the microstructure of the stock market from the perspective of the web news.

• IE interfaces
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• v.13 no.3
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• pp.444-454
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• 2000

Due to the improvement of modern information technologies, sharing stock information among the supply chain members is a common practice nowadays. Many companies are planning to adopt the information systems to possess the real-time shared stock information. Thus, it is needed to quantify the value of shared stock information. The purpose of this paper is to evaluate the value of the shared stock information for two-echelon distribution systems. Existing reorder policies can be classified into installation stock policies and echelon stock policies. Since installation stock policies do not utilize the shared stock information, and both classes of policies may show poor performances for distribution systems, we cannot evaluate the value of the shared stock information with the existing policies. Thus, we provide a new type of reorder policy, named order risk policy. We define the order risk using marginal analysis, and prove the optimality. Through computational experiment that compares the order risk policy with the existing policies, it is shown that a significant cost reduction is achieved with the effective utilization of the shared stock information. We also show the effect of the system characteristics on the value of the shared stock information.

• Journal of the Korean Operations Research and Management Science Society
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• v.37 no.3
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• pp.95-116
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• 2012

The purpose of this paper is to show the effect of information sharing strategy on the supply chain performances. While traditional information sharing models assumed centralized stock information, recent supply chain practices often implement fully shared stock information, where real-time stock information is accessible on retailers. When retailers are competing with each other, this fully shared stock information may incur retailers' strategic order behaviors. Thus, this paper analyzes a simple two-level supply chain consisting of one warehouse and two identical competing retailers where the real time stock information is fully shared. The warehouse uses the traditional echelon stock policy. Under this environment the retailers' reorder decisions are derived using the order risk concept and the retailer competition mechanism is analyzed. Computational results show that the supply chain performace degradation in the fully shared stock information is quite significant, implying the importance of designing information sharing strategies in the supply chain design phase.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.795-807
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• 2020

The more liquid the capital market, the more attractive it will be for investors to place their money in the capital market. Therefore, the purpose of this study is to investigate the factors that influence stock liquidity of manufacturing sector companies listed on the stock exchange in Indonesia. The independent variables used in this study are forward-looking information disclosure, institutional ownership, foreign ownership, and board activity with information asymmetry as an intervening variable and stock liquidity as the dependent variable. The population of this study is manufacturing sector companies listed on the Indonesian stock exchange (IDX). Samples are selected based on the random sampling method, and the number of samples is calculated based on the Slovin formula. The sample was 59 manufacturers, and data was annual reports (for 2 years) and stock transactions from 2016 to 2017. The results of the study showed that forward-looking information disclosure had a significant effect on information asymmetry. Information asymmetry and foreign ownership have a significant impact on stock liquidity, whereas information asymmetry mediates the relationship between forward-looking disclosures and stock liquidity. Furthermore, the accuracy of information about the certainty of business activity both now and in the future can instill confidence in stakeholders in interacting and cooperating.

• International Journal of Computer Science & Network Security
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• v.22 no.2
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• pp.1-8
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• 2022

This work provides a reliable and classified stocks dataset merged with Saudi stock news. This dataset allows researchers to analyze and better understand the realities, impacts, and relationships between stock news and stock fluctuations. The data were collected from the Saudi stock market via the Corporate News (CN) and Historical Data Stocks (HDS) datasets. As their names suggest, CN contains news, and HDS provides information concerning how stock values change over time. Both datasets cover the period from 2011 to 2019, have 30,098 rows, and have 16 variables-four of which they share and 12 of which differ. Therefore, the combined dataset presented here includes 30,098 published news pieces and information about stock fluctuations across nine years. Stock news polarity has been interpreted in various ways by native Arabic speakers associated with the stock domain. Therefore, this polarity was categorized manually based on Arabic semantics. As the Saudi stock market massively contributes to the international economy, this dataset is essential for stock investors and analyzers. The dataset has been prepared for educational and scientific purposes, motivated by the scarcity of data describing the impact of Saudi stock news on stock activities. It will, therefore, be useful across many sectors, including stock market analytics, data mining, statistics, machine learning, and deep learning. The data evaluation is applied by testing the data distribution of the categories and the sentiment prediction-the data distribution over classes and sentiment prediction accuracy. The results show that the data distribution of the polarity over sectors is considered a balanced distribution. The NB model is developed to evaluate the data quality based on sentiment classification, proving the data reliability by achieving 68% accuracy. So, the data evaluation results ensure dataset reliability, readiness, and high quality for any usage.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.833-843
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• 2021

This research examines the impact of audit quality on the extent to which firm-specific information is integrated with a firm's share price - which is determined inversely using stock price synchronicity. The study sample consists of non-financial companies listed on the Amman Stock Exchange i.e., the Jordanian Stock Market, from 2014-2018. After examining 810 firm-year observations from Jordanian industrial companies listed on the ASE, during the study period, we find that the companies using one of the BIG4 audit firms for auditing have less synchronous and more informative stock prices, suggesting high-quality audit improved governance and reduce information asymmetry between firms' insiders and investors which enhances the capitalization of firm's specific information into the stock price, thus less synchronous and more informative stock return. The findings remain consistent over 2 separate measurements of stock price synchronicity (Market and Industry model and Market Model) and show robustness for fixed effect tests. Our multivariate regression results are also robust after controlling for a number of features at the firm level with potential associations with stock price synchronicity. These include the firm size, leverage, return on assets (ROA), and market to book value (MBV).

• The Journal of Industrial Distribution & Business
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• v.11 no.12
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• pp.39-45
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• 2020

Purpose: The stock price delay phenomenon refers to a phenomenon in which stock prices do not immediately reflect corporate information and the reflection is delayed. A prior study reported that the stock price delay phenomenon appears strongly when the quality of corporate information is low (Callen, Khan, & Lu, 2013). The purpose of the internal accounting control system is to improve the reliability of accounting information. Specifically, the more professionals such as certified public accountants are placed in the internal accounting control system, the more information is prevented from being distorted, so the occurrence of stock price delay will decrease. Research design, data and methodology: In this study, companies listed on the securities market from 2012 to 2016 were selected as a sample to analyze whether the stock price delay phenomenon is alleviated as accounting experts are assigned to the internal accounting control system. The internal control personnel data were collected in the "Internal Accounting Control System Operation Report" attached to the business report of each company of the Financial Supervisory Service's Electronic Disclosure System(DART). The measurement method of the stock price delay phenomenon was referred to the study of Hou and Moskowitz (2005). The final sample used in the study is 2,641 firm-years. Results: It was found that companies with certified accountants in the internal accounting control system alleviate the stock price delay phenomenon. This result can be interpreted as increasing the speed at which corporate information is reflected in the stock price by improving the reliability of information disclosed in the market by the placement of experts in the system. Conclusions: The results of this study suggest that accounting professionals assigned to the internal accounting control system are playing a positive role in providing high-quality information to the market. In this study, focusing on the fact that the speed at which corporate information is reflected in the stock price is very important for the stakeholders in the capital market, we find that having a certified public accountant in the internal accounting control system alleviates the stock price delay phenomenon.

• Journal of Distribution Science
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• v.19 no.1
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• pp.27-35
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• 2021

Purpose: This study is to investigate the effect of managerial ownership level in distribution and service companies on the stock price crash. The managerial ownership level affects the firm's information disclosure policy. If managers conceal or withholds business-related unfavorable factors over a long period, the firm's stock price is likely to plummet. In a similar vein, management's equity affects information opacity, and information asymmetry affects stock price collapse. Research design, data, and methodology: A regression analysis is conducted using the data on companies listed on the Korea Composite Stock Price Index (KOSPI) between 2012-2017 to examine the effect of the managerial ownership level on stock price crash risks. Results: Logistic and regression results indicate that the stock price crash risk was reduced as managerial ownership levels are increased. The managerial ownership level has a significant negative coefficient on stock price crash risk, negative conditional return skewness of firm-specific weekly return distribution, and asymmetric volatility between positive and negative price-to-earnings ratios. Conclusions: As the ownership and management align, the likeliness of withholding business-related information is reduced. This study's results imply that the stock price crash risk reduces as the managerial ownership level increases because shareholder and manager interests coincide, thereby reducing information asymmetry.

• Journal of the Korean Data and Information Science Society
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• v.23 no.6
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• pp.1075-1084
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• 2012

This study examines stock market co-movement among three China stock markets: Shanghai stock market, Shenzhen stock market, Hongkong stock market. US stock market leads three China stock markets and Honkong stock market leads Shanghai and Shenzhen stock market. But there are no lead-lag effects among China stock markets after controlling US stock market effect. These results could be important for the investors and firms that are interested in China stock markets.