The web mirrors value in the real world: comparing a firm’s valuation with its web network position
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10588_2015_9189_ReferencePDF.pdf
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Author(s)
Yun, Qiaoyun
Gloor, Peter A.
Date Issued
July 2015
Journal
Computational and Mathematical Organization Theory
Publisher
Springer Science+Business Media
Citation
Yun, Qiaoyun, and Peter A. Gloor. “The Web Mirrors Value in the Real World: Comparing a Firm’s Valuation with Its Web Network Position.” Computational and Mathematical Organization Theory 21, no. 4 (July 31, 2015): 356–379.
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Author's final manuscript
Abstract
This paper compares a firm’s innovation and performance with its online Web presence measured through the Web network structure. 489 firms in five different industries listed on the United States and Chinese stock markets are investigated. Using Web link data collected from Bing, blogs, Twitter and Wikipedia, we find positive correlation between betweenness centrality of a firm in the Web network and its innovation capability; and between betweenness centrality and financial performance. In order to get more accurate forecasting results, regression analysis is done for each industry and the combined industries in the United States and China. We also find that Twitter and Wikipedia only predict a firm’s performance in the United States, which is not surprising as they are officially blocked in China. Blogs predict better in China than they do in the United States, as it might still be a major social media tool for Chinese firms; while for the US firms, blogs have been supplemented by Twitter and Wikipedia.
MIT Department
Massachusetts Institute of Technology. Center for Collective Intelligence
Sloan School of Management
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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DOI of Published Version
https://doi.org/10.1007/s10588-015-9189-6
