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This study investigates the effect of corporate online interaction activeness on investors’ perceptions of earnings information. Using a large sample of Chinese listed firms for the period 2010–2019, we find that investors’ perceptions of earnings information, measured by earnings response coefficients (ERCs), increase with the level of corporate online interaction activeness, and the effect is more pronounced in firms with a larger retail investor base and higher stock illiquidity. Our results suggest that social media interaction helps to improve stock price efficiency.

Does corporate online interaction activeness affect investors’ perceptions of earnings information? Evidence from China