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Do online investor discussions affect managerial learning from stock prices ?

Author

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  • Luo, Jingyi
  • Wu, Wenfeng
  • Yi, Miaomiao

Abstract

Utilizing data from the East Money stock forum, one of China’s most influential financial portals, this study investigates how online discussions among retail investors influence managerial learning from stock prices to make investment decisions. We find that higher discussion intensity is associated with lower investment-q sensitivity, indicating that such discussions impede managerial learning from prices. This effect operates through a decline in information asymmetry and the probability of informed trading, and is more pronounced for managers with stronger incentives to learn from market signals. Additional analyses show that online discussions decrease private information and increase public information in stock prices without raising noise; the reduction in investment-q sensitivity is primarily driven by investors with high information breadth or depth. Overall, our findings support a crowding-out mechanism: online discussions facilitate public information diffusion, crowding out the private information gathering of informed traders, thereby reducing the informativeness of prices for real investment decisions.

Suggested Citation

  • Luo, Jingyi & Wu, Wenfeng & Yi, Miaomiao, 2026. "Do online investor discussions affect managerial learning from stock prices ?," Finance Research Letters, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:finlet:v:105:y:2026:i:c:s1544612326007841
    DOI: 10.1016/j.frl.2026.110256
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