Online social networks, media supervision and investment efficiency: An empirical examination of Chinese listed firms
AffiliationZhejiang Yuexiu University of Foreign Language
University of Shanghai for Technology and Science
University of Derby
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AbstractPrior literature suggests that media reports acting as external supervision improve information transparency and corporate governance leading to increased investment efficiency. This study empirically tests this hypothesis in the context of online social networks by investigating the combined effects of online social networking and media reports on investment efficiency using a sample of Chinese listed firms. Our results show that the interaction of media reports and Tobin's q ratio is negatively related to corporate investment efficiency. However, the introduction of online social networks turns this relationship from a negative to a positive and statistically significant one. The combined factors significantly increase investment efficiency in non-SOEs (State Owned Enterprises) but not in SOEs. We provide evidence that online social networking effectively mitigates the negative effect of media supervision on investment efficiency, further advancing knowledge of the link of external supervision and corporate governance.
CitationYang, X., Cao, D., Andrikopoulos, P., Yang, Z. and Bass, T., (2020). 'Online social networks, media supervision and investment efficiency: An empirical examination of Chinese listed firms'. Technological Forecasting and Social Change, 154, pp, 1-12.
JournalTechnological Forecasting and Social Change