Measuring social influence for firm-level financial performance

Luo, Peng1; Chen, Kun2; Wu, Chong1

2016-11-01

10.1016/j.elerap.2016.09.004

Electronic Commerce Research and Applications   影响因子和分区

1567-4223

1873-7846

Social influence is a universal concept that measures the interactions and links between entities. Existing social influence research primarily focuses on friendship networks among people. We propose a general approach to measure social influence in a type of objective entity, specifically in company networks. To construct the company influence network, we mine network links (company relationships) from the news and obtain node attributes (company influence) from search indices. Using the company influence network, two social influence measures are explored: the number of peers and weighted peer effects. To address time-series data, all variables are integrated into a vector autoregression model to forecast the company's financial performance in terms of stock return and risk. The results of our simulation and robust testing suggest that our social influence measures have the power to predict firm financial performance. (C) 2016 Elsevier B.V. All rights reserved.

Company influence network Financial markets News reports Search index Social influence Vector autoregression

SCI ; EI ; SSCI

英语

通讯

National Natural Science Foundation of China[71532004] ; National Natural Science Foundation of China[71601090]

Business & Economics ; Computer Science

Business ; Computer Science, Information Systems ; Computer Science, Interdisciplinary Applications

WOS:000392824700002

ELSEVIER SCIENCE BV

20163902833936

Financial markets ; Investments ; Regression analysis

Mathematical Statistics:922.2 ; Social Sciences:971

Web of Science

1.Harbin Inst Technol, Sch Management, Harbin 150001, Peoples R China
2.South Univ Sci & Technol, Dept Finance, Shenzhen 518055, Peoples R China

Luo, Peng,Chen, Kun,Wu, Chong. Measuring social influence for firm-level financial performance[J]. Electronic Commerce Research and Applications,2016,20:15-29.

Luo, Peng,Chen, Kun,&Wu, Chong.(2016).Measuring social influence for firm-level financial performance.Electronic Commerce Research and Applications,20,15-29.

Luo, Peng,et al."Measuring social influence for firm-level financial performance".Electronic Commerce Research and Applications 20(2016):15-29.