Earnings Calls and Echo Chambers: Evidence from the Introduction of Livestreaming on StockTwits

Abstract

We examine whether improved access to firm disclosures weakens social media echo chambers, using the introduction of livestreamed earnings calls on StockTwits as a shock. We find that call streaming is associated with lower selective following, reduced exposure to confirmatory content, and belief revision over the following 30 days. Both call content and real-time chats contribute, with the strongest effects when calls surface disconfirming information and chats are active and diverse. The findings suggest that reducing frictions to accessing primary information and increasing exposure to diverse views can help mitigate the consequences of echo chambers in financial markets.

Keywords

Tags of Social Finance