Social Media and Finance - part 2
Social Media and Alpha
From the perspective of a funds manager, social media create:
- Information inflow: for alpha capture
- Information outflow: to influence the market
Social Media and Corporate Governance
1. Individual investors have more tools for monitoring the companies they own.
2. Bargain:
Traditionally investors have certain tools in hand to influence the companies: board, proxy fight, external audit, internal audit, credit rating agencies
Social media supplements mass media in strategies in corporate decision, social attitude and regulation bargaining.
The power of Social Media should not be overlooked, as many will be tempted to use these low-cost tools.






