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Can the transmission of entrepreneurs' We Media information improve the value relevance of earnings? Evidence from China

Tong Sun (School of Business, Zhejiang Wanli University, Ningbo, China)
Wanyi Chen (Shanghai University, Shanghai, China)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 28 February 2023




Following the growing adoption of social media, many entrepreneurs are launching personal social media channels. This study focuses on the effect of entrepreneurs' shared information on We Media platforms on the value relevance of their earnings.


Using entrepreneurs' We Media data collected from A-share-listed companies on the Shanghai and Shenzhen Stock Exchanges from 2010 to 2018, this study investigates the effect of the data on the value relevance of earnings using the modified Ohlson model. The authors applied textual analysis to retrieve entrepreneurial We Media data acquired manually from Weibo.


We Media platforms can increase the value relevance of earnings. Entrepreneurs can enhance investor trust by establishing social ties with investors. Investors are more likely to recognize earnings information publicized by enterprises, owing to internal consistency. Particularly, value relevance improves significantly with more personal information being posted and more “likes” being acquired on entrepreneurs' We Media accounts. This positive effect is more obvious in privately owned and highly marketized regions.


The findings extend the research on the economic consequences of We Media as an important information channel, enrich the research on the social media posting behavior of entrepreneurs and provide a reference for enterprises to instill trust using new information disclosure methods and for governments to establish a safe internet environment to promote the sustainable development of the capital market.



This research was supported by Zhejiang Provincial Natural Science Foundation of China (Project No. LQ22G020001); Ministry of Education Youth Foundation Project of Humanities and Social Sciences (Project No. 21YJC630121); Major Humanities and Social Sciences Research Projects in Zhejiang higher education institutions (Project No. 2023QN113); National Natural Science Foundation of China (Project No. 72102139).


Sun, T. and Chen, W. (2023), "Can the transmission of entrepreneurs' We Media information improve the value relevance of earnings? Evidence from China", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print.



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