Informed Investors and the Internet

摘要: Abstract: During the last decade Internet has become an increasingly important sourcefor gathering company related information. We employ Wikipedia editing frequency as aninstrument that captures degree in which population is engaged with processingof company-related find firms whose information processed by thepopulation more frequently are associated lower analysts’ forecast errors, smaller analysts’forecast dispersions, and significant changes bid-ask spreads on recommendationdays. These results indicate processing over to degreeto investors analysts informed about companies. Keywords: analysts, Dow Jones, asymmetry, self-efficacy, Internet, 1. INTRODUCTIONIt was almost two decades ago when recognized ‘the informationsuperhighway’. While there may be debates source of term, its adequacyis unequivocal. Since introduction, proven revolutionize theway people learn, interact, communicate. In space unlimited,censorship nonexistent, individuals from all different backgrounds canhave a voice. Hence, advent volumes can beaccessed any place at time, raw data explored, heterogeneousperspectives communicated.Possessing such attributes, provide moreand better many domains. retail consumption, technologywas found asymmetries between customers retailers (Bakos,2001). The cost acquiring price information, well