Information Dissemination And Stock Market Performance

With the continuous development of Internet technology and the growth of the number of mobile terminal network user,social network plays an increasingly important role in information dissemination and communication,and WeChat is a typical representative.Many listed companies have opened the WeChat official accounts to release related information on the platform and strengthen communication with investors.But how well does it work,it's questionable whether it can effectively reduce the degree of information asymmetry,and then reflected in the market,enhance market liquidity and reduce volatility,the result is not yet known.Therefore,in order to test the effect of information on WeChat released by listed companies,it is necessary to analyze the influence mechanism of information dissemination on stock market performance based on the data of WeChat official accounts.In this paper,we systematically review the relevant literature on information disclosure to the stock market.Based on the effective market theory and information asymmetry theory,we discuss the impact of information transmission on stock market volatility and liquidity and the way of action.On the basis of theoretical analysis,this paper puts forward research hypotheses and the empirical regression models,and then uses models to verify the influence of listed companies' disclosure of information through WeChat on the volatility and liquidity of the stock market.First of all,this paper makes a trend analysis of sample data,and finds that more and more listed companies are starting to use WeChat official accounts to release information and keep fast growth.Secondly,in the regression model,this paper selects the amount of excess reading and whether there is a financial hyperlink as explanatory variables,and choose idiosyncratic volatility and excess turnover rate as explanatory variables to measure market volatility and liquidity respectively.The empirical result shows that excess reading has a significant negative impact on the volatility and liquidity of the market.And the reason why the excess reading has a negative impact on liquidity is that volatility and liquidity change in a same direction in the stock market.After that,on the basis of the amount of reading,the sample is divided into high,medium and low amount of reading three groups,then do regression separately.We find that the influence of excess reading on market performance is changed by basic reading volume.When reading volume is too low,excess reading volume has no significant effect on market performance.Whether having a hyperlink with financial statements has no effect on market volatility and liquidity.According to the conclusion of the empirical analysis,this paper puts forward three suggestions from the perspective of listed companies,investors and supervisors.For the listed companies,they should try to use the new media channels such as WeChat to disclosure information;and investors can deepen the understanding of listed companies with WeChat,micro-blog and other platforms;for the regulators,they should actively encourage listed companies to disclose information in a variety of ways,and take appropriate supervision and guidance of information on new media.