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Hirshleifer, D. and Hong Teoh, S. (2003) Herd Behaviour and Cascading in Capital Markets: A Review and Synthesis. European Financial Management, 9, 25-66.
https://doi.org/10.1111/1468-036x.00207

has been cited by the following article:

• TITLE: Assessing the Value Generated by Investor Discussion Boards for Short-Term Traders

  AUTHORS: Ying Zhang

  KEYWORDS: Online Trading, Online Investors, Social Network, Investor Discussion Board, Reputation Mechanism

  JOURNAL NAME: Journal of Mathematical Finance, Vol.15 No.2, May 30, 2025

  ABSTRACT: Investor discussion boards (IDBs), such as Stocktwits and TheLion, are widely used by short-term traders. This paper adopts a novel approach to assess the value that IDBs can provide to these traders. Our model identifies four key elements that influence this value under specific assumptions: 1) the board’s reputation mechanism, 2) the posters’ posting rate, 3) the posters’ learning ability, and 4) the board’s poster growth rate. While the reputation mechanism determines the direction of the value, the combined impact of all four elements determines its magnitude. Understanding this value has significant implications for practitioners, researchers, and policymakers.