Enterprise online sales and extreme changes in stock prices
DOI:
https://doi.org/10.62051/hx3zdp03Keywords:
Online sales; stock prices soar and crash; information asymmetry; abnormal fluctuation of sales data.Abstract
With the continuous development of the Internet, online sales are increasingly becoming an important sales channel for enterprises, and its impact on the capital market is also increasing. This article uses the online sales data of A-share listed firms between 2015 and 2024 to study the effect of online sales of enterprises on the soar and crash of stock prices. The study found that online sales, on the one hand, suppresses the soar and crash of stock prices by improving the transparency of information, and on the other hand, the abnormal fluctuations of online sales data affect investors' judgement, thus promoting the soar and crash of stock prices. The regression results of sub-samples show that the impact of online sales data on the soar and crash of stock prices is more obvious in enterprises with duality and the rate of separation of company’s shareholding and management. Mechanism analysis shows that online sales affect extreme changes in stock prices by increasing the number of Baidu searches, news and improving the quality of financial information. The above results are consistent with the logic that online sales can not only improve the information environment, but also amplify the irrational investment of investors. This conclusion is of certain significance for listed companies to improve information disclosure, strengthen corporate governance and prevent extreme fluctuations in stock prices.
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