Online Media Causes Biased Stock Investment: Evidence from a Regression-Discontinuity Design

Zhou Jiali, Ka Chung Ng

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review


This study builds the causal link between the online media and finance market using the context of Chinese stock market. We find that, ranking higher in a typical daily market report causes a stock to have 10% more chance to open higher on the second day than those lower ranked stocks. We further find evidence that this impact of social media reflects a bias rather than a rational expectation, and the effect is stronger when more stocks reach the price limit. However, this effect disappears when investors are given more time to think.
Original languageEnglish
Title of host publicationICIS 2020 Proceedings
PublisherAssociation for Information Systems
Number of pages1
Publication statusPublished - 18 Nov 2020
Event2020 International Conference on Information Systems (ICIS) - Online
Duration: 13 Dec 202016 Dec 2020


Conference2020 International Conference on Information Systems (ICIS)
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