Alina Lerman (University of Connecticut) studies online financial communities by analyzing accounting-related content in large samples of Yahoo! message board posts and StockTwits. She finds that investors pay attention to a range of accounting information but the discussion is heavily dominated by a focus on earnings, cash, and revenues. Additionally, she observes elevated accounting-related discussion around the filings of earnings releases and 8-K reports, but the reaction to periodic reports (10-Ks and 10-Qs) is confined to small firms. Investors expand their accounting information acquisition and processing efforts for firms with poor information environments, such as those lacking analyst coverage.
Read the full paper Lerman, A. “Individual Investors’ Attention to Accounting Information: Evidence from Online Financial Communities” Contemporary Accounting Research, Forthcoming, https://ssrn.com/abstract=3564528