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...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-02-01
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| Series: | China Journal of Accounting Studies |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/21697213.2025.2469703 |
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| _version_ | 1850108955319074816 |
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| author | Xiaoyang Zhao Xiaoliang Lyu Zengquan Li |
| author_facet | Xiaoyang Zhao Xiaoliang Lyu Zengquan Li |
| author_sort | Xiaoyang Zhao |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-b84677dcafb14604bbce2a9b7cf94cdb |
| institution | OA Journals |
| issn | 2169-7213 2169-7221 |
| language | English |
| publishDate | 2025-02-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | China Journal of Accounting Studies |
| spelling | doaj-art-b84677dcafb14604bbce2a9b7cf94cdb2025-08-20T02:38:13ZengTaylor & Francis GroupChina Journal of Accounting Studies2169-72132169-72212025-02-0113110.1080/21697213.2025.2469703How Does Social Media Affect the Usefulness of Accounting Information?Xiaoyang Zhao0Xiaoliang Lyu1Zengquan Li2School of Management, Jinan University, Guangzhou, ChinaSchool of Accountancy, Shanghai University of International Business and Economics, Shanghai, ChinaSchool of Accountancy, Shanghai University of Finance and Economics, Shanghai, ChinaAccounting 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.https://www.tandfonline.com/doi/10.1080/21697213.2025.2469703Big datasocial mediaaccounting informationcapital market |
| spellingShingle | Xiaoyang Zhao Xiaoliang Lyu Zengquan Li How Does Social Media Affect the Usefulness of Accounting Information? China Journal of Accounting Studies Big data social media accounting information capital market |
| title | How Does Social Media Affect the Usefulness of Accounting Information? |
| title_full | How Does Social Media Affect the Usefulness of Accounting Information? |
| title_fullStr | How Does Social Media Affect the Usefulness of Accounting Information? |
| title_full_unstemmed | How Does Social Media Affect the Usefulness of Accounting Information? |
| title_short | How Does Social Media Affect the Usefulness of Accounting Information? |
| title_sort | how does social media affect the usefulness of accounting information |
| topic | Big data social media accounting information capital market |
| url | https://www.tandfonline.com/doi/10.1080/21697213.2025.2469703 |
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