Effect Of Information Diffusion Research Articles

Information demand and net selling around earnings announcement

Previous literature has shown the effectiveness of information dissemination channels on reducing information asymmetry from the supply-side. This paper mainly focuses on investigating the effects of information diffusion from the demand-side, i.e., investors’ voluntary demand for firm-specific information proxied by Baidu Search Volume Index. By taking the earnings announcement as an example for information asymmetry, we observe a net-selling behavior for investors during the pre-announcement periods that are closely related to changes of returns around the earnings announcements. More importantly, our empirical tests prove that the increased investors’ information demands help to alleviate the net-selling phenomenon as well as its further effects on earnings announcements returns that are resulted from the high information asymmetry during pre-announcement periods. In that sense, we conclude that investors’ information demand contributes to reducing information asymmetry by incorporating information into stock prices.

Jumping onto the bandwagon of collective gatekeepers: Testing the bandwagon effect of information diffusion on social news website

Based on collaborative information filtering and information aggregation services, the social news website carries out a collective gatekeeping function, supplying an empirical ground to test the bandwagon effect on information diffusion. Modeling the interpersonal effect and bandwagon effect in collective gatekeeping with threshold models, we confirm the bandwagon effect of collective gatekeeping on news diffusion with two novel datasets. The results demonstrate that the bandwagon of collective gatekeepers is the primary driver for online news diffusion. Interestingly, the bandwagon effect of collective gatekeeping is moderated by the strength of interpersonal effects. The theoretical generalizations of this research contribute to our understanding about the impact of collective gatekeeping on information diffusion.

Institutional Investor Conference Calls and Information Diffusion Effect

This paper explores the effects of information diffusion by investigating a sample of firms that voluntarily held institutional investor conference calls (IICCs) between 2004 and 2011. The empirical results reveal a positive correlation between the abnormal returns of IICCs and average industry returns, indicating that IICCs exhibit information diffusion effects and diffuse asymmetry. Moreover, the information environment (IE) of firms plays a critical role in information dissemination. For firms with an IE that is more conducive for information dissemination, the effects of information diffusion are enhanced. Firms with high information asymmetry have strong information diffusion effects. Key words: Institutional investor conference call, information diffusion effect, lead-lag effect, information environment

Agent-based modeling framework for modeling the effect of information diffusion on community acceptance of mining

Mine managers find it challenging to predict changes in the level of acceptance of their mining projects due to changes in associated social, environmental and technological factors. To address this challenge, this study presents a: (i) framework for modeling the effect of information diffusion on community acceptance of mining using agent-based modeling (ABM); and (ii) case study to illustrate the framework. The model, built in Matlab, defines individuals in the community as independent agents that interact with other agents for information. The agents' utility function is derived from discrete choice models. Drawing on data from the literature, a case study was used to illustrate the framework. The results indicate that changes in agents' perception of air pollution have a significant effect on acceptance of mining while demographic factors do not. The proposed framework could be applied in other sectors besides mining and provides stakeholders a tool to integrate sustainability into design and management choices.

웹 플랫폼 프로그램 시청 유형·프로그램의 화제성이 프로그램에 대한 정보 확산에 미치는 영향 연구

웹 플랫폼 프로그램 시청 유형·프로그램의 화제성이 프로그램에 대한 정보 확산에 미치는 영향 연구

Informed trading and the price impact of block trades: A high frequency trading analysis

Using high frequency data from the London Stock Exchange (LSE), we investigate the relationship between informed trading and the price impact of block trades on intraday and inter-day basis. Price impact of block trades is stronger during the first hour of trading; this is consistent with the hypothesis that information accumulates overnight during non-trading hours. Furthermore, private information is gradually incorporated into prices despite heightened trading frequency. Evidence suggests that informed traders exploit superior information across trading days, and stocks with lower transparency exhibit stronger information diffusion effects when traded in blocks, thus informed block trading facilitates price discovery.

Informed Trading and the Price Impact of Block Trades

Using high frequency data from the London Stock Exchange (LSE), we investigate the relationship between informed trading and the price impact of block trades on intraday and inter-day basis. Price impact of block trades is stronger during the first hour of trading; this is consistent with the hypothesis that information accumulates overnight during non-trading hours. Furthermore, private information is gradually incorporated into prices despite heightened trading frequency. Evidence suggests that informed traders exploit superior information across trading days, and stocks with lower transparency exhibit stronger information diffusion effects when traded in blocks, thus informed block trading facilitates price discovery.

Dynamic Games in Novel Networks: Guest Editors’ Forewords

An increasing number of man-made networked systems, such as social networks and online platforms, govern the interactions between players through predefined actions such as the possibility of sharing informations, accessing a service, express opinions or preferences. Ultimately, the evolution of such systems is determined by strategic interactions developing over complex structures. Strategic interactions, which take place at the local level, e.g., in a node’s neighborhood, finally emerge to determine global system configurations. This special issue has collected a set of contributions, which are inspired by this general framework. In this broad context, two contributions in this special issue are focused on network effects. In particular, coordination games are used as atomic representation of imitation behavior of playerswhichmay propagate or not in an interconnected system, e.g., across a social network. Khan et al. study the influence of network topology on the emergence of efficient equilibria in coordination games and explore numerically the convergence time to such configurations. Conversely, Peeters et al. focus on the effect of information diffusion by considering global interaction and confine imitation to the neighborhood of players. The individual choice of customers of a queuing system is studied in the paper authored by Wiecek and Altman, where the authors develop a theory which captures existence of threshold-type policies in the decision to join or not to join a queue. The authors also study the role of the amount of information about the queue backlog available at customers upon their arrival to the queue. Shimkin andAltman study a game of timing between a randomnumber of content creators, who compete for position and exposure time over a sharedmedium such as an online classified list.

The power of indirect ties

While direct social ties have been intensely studied in the context of computer-mediated social networks, indirect ties (e.g., friends of friends) have seen little attention. Yet in real life, we often rely on friends of our friends for recommendations (of good doctors, good schools, or good babysitters), for introduction to a new job opportunity, and for many other occasional needs. In this work we attempt to 1) quantify the strength of indirect social ties, 2) validate the quantification, and 3) empirically demonstrate its usefulness for applications on two examples. We quantify social strength of indirect ties using a measure of the strength of the direct ties that connect two people and the intuition provided by the sociology literature. We evaluate the proposed metric by framing it as a link prediction problem and experimentally demonstrate that our metric accurately (up to 87.2%) predicts link’s formation. We show via data-driven experiments that the proposed metric for social strength can be used successfully for social applications. Specifically, we show that it can be used for predicting the effects of information diffusion with an accuracy of up to 0.753. We also show that it alleviates known problems in friend-to-friend storage systems by addressing two previously documented shortcomings: reduced set of storage candidates and data availability correlations.

Slow-down or speed-up of inter- and intra-cluster diffusion of controversial knowledge in stubborn communities based on a small world network

Diffusion of knowledge is expected to be huge when agents are open minded. The report concerns a more difficult diffusion case when communities are made of stubborn agents. Communities having markedly different opinions are for example the Neocreationist and Intelligent Design Proponents (IDP), on one hand, and the Darwinian Evolution Defenders (DED), on the other hand. The case of knowledge diffusion within such communities is studied here on a network based on an adjacency matrix built from time ordered selected quotations of agents, whence for inter- and intra-communities. The network is intrinsically directed and not necessarily reciprocal. Thus, the adjacency matrices have complex eigenvalues, the eigenvectors present complex components. A quantification of the slow-down or speed-up effects of information diffusion in such temporal networks, with non-Markovian contact sequences, can be made by comparing the real time dependent (directed) network to its counterpart, the time aggregated (undirected) network, - which has real eigenvalues. In order to do so, small world networks which both contain an $odd$ number of nodes are studied and compared to similar networks with an $even$ number of nodes. It is found that (i) the diffusion of knowledge is more difficult on the largest networks, (ii) the network size influences the slowing-down or speeding-up diffusion process. Interestingly, it is observed that (iii) the diffusion of knowledge is slower in IDP and faster in DED communities. It is suggested that the finding can be "rationalized", if some "scientific quality" and "publication habit" is attributed to the agents, as common sense would guess. This finding offers some opening discussion toward tying scientific knowledge to belief.

Information Diffusion Effects in Individual Investors' Common Stock Purchases: Covet Thy Neighbors' Investment Choices

We study the relation between households' stock purchases and stock purchases made by their neighbors. A ten percentage point increase in neighbors' purchases of stocks from an industry is associated with a two percentage point increase in households' own purchases of stocks from that industry. The effect is considerably larger for local stocks and among households in more social states. Controlling for area sociability, households' and neighbors' investment style preferences, and the industry composition of local firms, we attribute approximately one-quarter to one-half of the correlation between households' stock purchases and stock purchases made by their neighbors to word-of-mouth communication.

Dynamics and optimization of a distributed sales-advertising model

A general sales-advertising model is developed in which the state of the system represents a population distribution over a parameter space. With appropriate interpretations, this can include income, family size, geographic distributions, etc. Effects of information diffusion, interaction, and population migration are included. Under fairly general conditions, it is shown that such model are well posed and that there exists an optimal control.