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Investor interaction and the valuation of listed companies

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  • Wang, Haijun
  • Jiao, Shuaipeng
  • Sun, Guanglin

Abstract

We examine the impact of investor interaction on the valuation of listed companies. We have developed distinctive micro-databases and indicators to delve into the impact of investor interaction on the valuation of listed companies and understand its underlying transmission mechanism. The research shows that: firstly, improving the interaction between listed companies and investors can significantly improve the valuation of listed companies. Secondly, investor interaction helps to enhance the quality of information disclosure, curb the non-systematic risk of stocks, increase stock activity and liquidity, and plays a mediating role in improving the valuation of companies. Thirdly, investor interaction has a moderating effect on the valuation of listed companies by influencing trading behaviors such as shareholding ratio and turnover.

Suggested Citation

  • Wang, Haijun & Jiao, Shuaipeng & Sun, Guanglin, 2024. "Investor interaction and the valuation of listed companies," Research in International Business and Finance, Elsevier, vol. 67(PB).
    • Handle: RePEc:eee:riibaf:v:67:y:2024:i:pb:s0275531923002702
    DOI: 10.1016/j.ribaf.2023.102144
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    Cited by:

    1. Wang, Haijun & Jiao, Shuaipeng & Ge, Chen & Sun, Guanglin, 2024. "Corporate ESG rating divergence and excess stock returns," Energy Economics, Elsevier, vol. 129(C).

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    More about this item

    Keywords

    Investor interaction; Valuation improvement; Interaction quality; Governance capacity;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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