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The impact of internet articles on investor trading decisions by investor types: Evidence from Korean stock market

Cho, H., Choi, G-Y. ORCID: 0000-0001-5285-2617 & Lee, J. (2023). The impact of internet articles on investor trading decisions by investor types: Evidence from Korean stock market. Finance Research Letters, 56, article number 104110. doi: 10.1016/


This study investigates the impact of internet articles, such as blogs or internet community posts, on investors’ trading decisions in response to uncertain news (i.e., rumors). Leveraging the unique disclosure requirement in Korea, which verifies rumors via firm disclosures, we are able to identify trading activities associated with rumors. We find that internet article coverage affects individual investors’ decisions, but not those of institutional investors. Moreover, the post-disclosure returns deteriorate only for individual investors with internet article coverage. Overall, these results suggest that internet articles adversely affect individual investors’ trading decisions on rumors, resulting in a wealth transfer from individual investors to institutional investors.

Publication Type: Article
Additional Information: © 2023. This manuscript version is made available under the CC-BY-NC-ND 4.0 license
Publisher Keywords: Internet articles, Social media, Blog, Information environment, Inquiry disclosure, Mandatory disclosure, Rumor, Investment decision, Institutional investors, Individual investors
Subjects: H Social Sciences > HG Finance
Departments: Bayes Business School > Finance
SWORD Depositor:
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