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How Does Social Media Affect the Usefulness of Accounting Information?

Xiaoyang Zhao et al.

China Journal of Accounting Studies2025https://doi.org/10.1080/21697213.2025.2469703article
AJG 1ABDC B
Weight
0.50

Abstract

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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https://doi.org/https://doi.org/10.1080/21697213.2025.2469703

Or copy a formatted citation

@article{xiaoyang2025,
  title        = {{How Does Social Media Affect the Usefulness of Accounting Information?}},
  author       = {Xiaoyang Zhao et al.},
  journal      = {China Journal of Accounting Studies},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1080/21697213.2025.2469703},
}

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How Does Social Media Affect the Usefulness of Accounting Information?

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.