How Does Social Media Affect the Usefulness of Accounting Information?
Accounting information has long been regarded as a crucial source of information in the capital market. However, the advent of big data and advancements in information technology raise questions about the implications of these developments on the usefulness of accounting information. This paper aims...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2025-02-01
|
| Series: | China Journal of Accounting Studies |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/21697213.2025.2469703 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | Accounting information has long been regarded as a crucial source of information in the capital market. However, the advent of big data and advancements in information technology raise questions about the implications of these developments on the usefulness of accounting information. This paper aims to address this issue, with a specific focus on the role of social media, a product of the big data era, in shaping the significance of accounting information. We find that, prior to earnings announcements, information shared on social media tends to weaken the usefulness of accounting information. Conversely, after earnings announcements, the communication and interaction among investors on social media platforms strengthen the usefulness of accounting information. Despite the dual impacts of social media on the usefulness of accounting information, empirical evidence suggests an overall net enhancement in its significance, attributable to social media. |
|---|---|
| ISSN: | 2169-7213 2169-7221 |