What Do Employees Know? Evidence from a Social Media Platform

Author:

Huang Kelly1ORCID,Li Meng2ORCID,Markov Stanimir2ORCID

Affiliation:

1. Florida International University

2. The University of Texas at Dallas

Abstract

ABSTRACT We use employee predictions of their companies' six-month business outlook from Glassdoor.com to assess the information content of employee social media disclosures. We find that average employee outlook is incrementally informative in predicting future operating performance. Its information content is greater when the disclosures are aggregated from a larger, more diverse, more knowledgeable employee base, consistent with the wisdom of crowds phenomenon. Average outlook predicts bad news events more strongly than good news events, suggesting that employee social media disclosures are relatively more important as a source of bad news. Consistent with the organizational theory, we find systematic differences in the quantity and nature of the information in employee disclosures when the disclosures are grouped based on employee attributes and job responsibilities. Finally, average outlook predicts future returns of firms that attract less attention by analysts and investors, suggesting that investors in these firms use outlook inefficiently.

Publisher

American Accounting Association

Subject

Economics and Econometrics,Finance,Accounting

Reference46 articles.

1. Geography, diversity, and accuracy of crowdsourced earnings forecasts;Adebambo,2016

2. Do nonexecutive employees have valuable information? Evidence from employee stock purchase plans;Babenko;Management Science,2016

3. What's my style? The influence of top managers on voluntary corporate financial disclosure;Bamber;The Accounting Review,2010

4. Non-executive employee ownership and corporate risk;Bova;The Accounting Review,2015

5. Brickley, J., C.Smith, and J.Zimmerman. 2009. Managerial Economics and Organizational Architecture. New York, NY: McGraw-Hill.

Cited by 106 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3