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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Main Authors: Xiaoyang Zhao, Xiaoliang Lyu, Zengquan Li
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
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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.
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publishDate 2025-02-01
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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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