Online Social Networks, Media Supervision and Investment Efficiency: An Empirical Examination of Chinese Listed Firms

Xiaoping Yang, Dongmei Cao, Panos Andrikopoulos, Zonghan Yang, Tina Bass

Research output: Contribution to journalArticle


Prior literature suggests that media reports acting as external supervision improve information transparency and corporate governance leading to increased investment efficiency. This study empirically tests this hypothesis in the context of online social networks by investigating the combined effects of online social networking and media reports on investment efficiency using a sample of Chinese listed firms. Our results show that the interaction of media reports and Tobin’s q ratio is negatively related to corporate investment efficiency. However, the introduction of online social networks turns this relationship from a negative to a positive and statistically significant one. The combined factors significantly increase investment efficiency in non-SOEs (State Owned Enterprises) but not in SOEs. We provide evidence that online social networking effectively mitigates the negative effect of media supervision on investment efficiency, further advancing knowledge of the link of external supervision and corporate governance.
Original languageEnglish
Article number119969
Number of pages13
JournalTechnological Forecasting and Social Change
Early online date22 Feb 2020
Publication statusE-pub ahead of print - 22 Feb 2020



  • Online social networks
  • Media supervision
  • Investment efficiency
  • China
  • Sina Weibo

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