Treffer: Can social media protect retail investors? Evidence from China mergers and acquisitions.

Mergers and acquisition is one of particularly brazen forms of controlling shareholders and managers to extract private benefits from retail investors in China. This study examines whether social media can play a positive role in impeding the opportunistic M&A actives. Using textual analysis to examine the effect of the Internet stock message board postings on M&A process, we find that retail investors' critical postings elicit negative market reaction, lower the acquisition premiums, and even make controlling shareholders and managers to withdraw the M&A attempt. Our results are consistent with the notion that social media play a role in corporate governance and the protection of retail investors' interests. [ABSTRACT FROM AUTHOR]

Copyright of Applied Economics Letters is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Volltext ist im Gastzugang nicht verfügbar. Login für vollen Zugriff.