Researchers assess social media's role in corporate governance, focusing on whether criticisms from small investors on internet stock message boards can forecast firm acquisition decisions. Using textual analysis of posts related to 303 value-reducing acquisition attempts, the researchers find that negative social media posts by small investors predict the withdrawal of proposed acquisitions, demonstrating that these criticisms offer valuable insights beyond traditional financial metrics and media coverage.
Feeling inspired? Share these insights on social.
Gain Access
