Investor–firm interactions and stock price crash risk

With the advancement of technology, social media platforms, represented by online interactive platforms, have improved information dissemination in a faster and more dynamic manner. This study examines the relationship between the quality of interactive Q&A between investors and corporate on online platforms and stock price crash risk, using a sample of A-share listed companies from 2010 to 2023. The quality of interaction is measured by the cosine similarity of the Q&A texts. The empirical results show that high-quality interaction between investors and companies can reduce stock price crash risk. The mitigating effect of high-quality interaction on stock price crash risk is more pronounced in firms with lower information transparency.