Grabbing Investor Attention with Limited Resources: A Study of Small Cap Firms’ Communication Channels
研究了伦敦证交所AIM市场的小盘股公司在财报发布前后如何使用新闻稿、电话会议和社交媒体三种渠道，发现它们用得少但会在好消息时多用，且社交媒体使用与投资者注意力正相关，但提前使用会导致股价反转。
This paper examines the communication strategies employed by small cap firms listed on the Alternative Investment Market (AIM) of the London Stock Exchange. These small cap firms have great discretion in choosing their communication channels with investors and evolve in an environment with few information intermediaries. We investigate the use of three communication channels – press releases, conference calls, and social media – specifically surrounding earnings announcements. Our findings indicate that small cap firms utilize these three communication channels infrequently. However, when announcing positive earnings news, small cap firms are more likely to employ these channels, suggesting that firms communicate opportunistically. We find a positive association between the use of communication channels, particularly of social media, and measures of investor attention. Interestingly, while the use of communication channels is associated with positive stock returns surrounding earnings announcements, social media usage prior to earnings announcements is linked to subsequent stock price reversals. These findings provide insights into the communication practices of small cap firms and their implications for investor attention and market efficiency.