Social Media Information And Market Reaction

With the popularity and development of the Internet,people's lifestyles are constantly changing.And social media is playing an increasingly significant role in people's lives.After more and more people are turned into "phubber" because of the mobile phone use,the enterprises are not far behind.Many companies have opened microblogging account or WeChat public accounts to convey the company information to the public better,or even further,disclose important information.At the same time,the public events also show a strong influence of social media.Through the way the Internet spread,not only the speed of news disseminates with an exponential growth,but also the scope of influence is expanding.Therefore,it can be said that the Internet has completely changed our way of lifestyle,have brought a great impact for all aspects of our lives.Since the reform and opening up,China's economy has developed rapidly,the number of private enterprises has increased sharply.In the private enterprises,family firms also accounted for a considerable proportion,not only a large number,but also the rapid development.With the entrepreneurs grow older,people are increasingly concerned about the ability and characteristic of the second generation heir,because these family firms will inherit to the hand of second generation of heirs or professional managers sooner or later.If the company's management right is given to the professional managers,they will use professional knowledge to manage the company.However,in order to ensure that professional managers do not harm the interests of the company,there will be a lot of agency costs.Therefore,the vast majority of family businesses still want to give enterprises to the second generation of successors such as "their own people",the successor.However,intergenerational transfer is not as simple as we thought.As for the second generation of heirs,their words,deeds,behaviors and actions will have influence,positive or negative,on the company's image and reputation.Therefore,this paper hopes to study the influence of the social media information released by the second generation heirs of family firms on the stock performance of the company.And find out the specific factors that affect the performance of the stock further.On the one hand,this article hopes to find out whether the release of social media information has impact on the stock performance and the influence factors.On the other hand,we hope to have guide the social media information release behaviors of second generation successors,encourage them disclose company information through social media,and leave a good impression of the company to poeple.As for research method,this article uses the event research method and the multiple regression analysis method.For the data source,this article finds WDYX stock performance from wind data base,sort data from Sina microblog using the information Wang Sicong released in last two years.After getting all data needed,process the data first.First of all,we use event analysis research methods to figure out excess returns on WDYX stock which are made by social media information release events.Secondly,we choose and define the variables,and through multiple regression analysis,we can get the main factors that affect the excess return of stock.Finally,the results of multiple regression analysis are explained and the conclusions are drawn,(a)The characteristic of microblog content will have a significant impact on the stock excess returns.Especially when the microblog's characteristic is negative,the social media information release will bring a negative cumulative excess return to the company's stock performance,(b)The microblog content will also affect the stock cumulative excess return,information about normal life can bring significant positive excess return to the company's stock.Information which is about showoff could bring a negative cumulative excess return,although this effect is not so significant,but it is enough to alert second generation of heirs,so that second generation of heirs can be aware of their social media information release can affect the company's stock performance directly,and then encourage the second generation of successors to bare the responsibility to family and the whole society actively and positively.To sum up.this article believes that the information released on social media by second generation of heirs could have an influence on company's stock excess return,especial information with negative characteristic and information about daily negative information will life.Therefore,we should encourage the second generation of heirs express their own attitude,behave well on social media or other occasions,establish a good image,honest and capable,Only in this way can successors attract more investors and win their trust.