News Diffusion in Social Networks and Stock Market Reactions

The paper was previously circulated under the title “Social Networks and Market Reactions to Earnings News.” We appreciate helpful comments and discussions from Linda Allen, Kenneth Ahern, Brad Barber, Tony Cookson, Ming Dong, Anastassia Fedyk (discussant), William Goetzmann, Jeremiah Green (discussant), Harrison Hong (discussant), Chong Huang, Paul Irvine, Mark Kamstra, Matthew Jackson, Danling Jiang, Christian Leuz, Dongmei Li (discussant), Roger Loh, Yueran Ma, Suraj Malladi, Asaf Manela (discussant), William Mullins (discussant), Lilian Ng, Joshua Pollet (discussant), Asani Sarkar, Zheng Sun, Jun Tu, Wei Wu (discussant), Wei Xiong, Lu Zheng, Dexin Zhou, Qifei Zhu, participants at BESC University of Queensland, Nanyang Technological University, the University of California, Irvine, Peking University, Texas A&M University, the University of Miami, the University of South Carolina, York University, the European Securities and Markets Authority, ESCP Business School, the Bank of England, the Financial Intermediation Research Society Meetings, the International Virtual Research Seminars on Finance, the NBER conference on Big Data and Securities Markets, the American Economic Association Annual Meetings, the American Finance Association Annual Meetings, the China International Conference in Finance, the Midwest Finance Association Meetings, the USC/Marshall Conference on Social and Behavioral Finance, the Conference on Network Science and Economics, the Future of Financial Information Conference, the Western Finance Association Conference, and the Hawaii Accounting Research Conference. We appreciate the recognition from the Driehaus Center for Behavioral Finance Research Prize and Peng thanks the Krell Research Fund and the Keynes Fund for generous support. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• January 17, 2023
• April 4, 2023