Stock market reaction to information technology investments: Towards an explanatory model

Online discussion forum, which plays an important role in online criticism, provides useful information such as online commentaries generated by other users. The paper uses regulatory focus theory to explain how online commentaries are processed differently depending on the user’s information processing style and how each self-regulatory mode moderates the impact of online commentaries on one’s overall evaluation of information. The study produces three major findings: (1) Promotion-focused users are more likely to distort online information than prevention-focused users do, (2) With hedonic information, information distortion will be stronger for promotion-focused users as compared to prevention-focused users, (3) With utilitarian information, information distortion will be stronger for prevention-focused people as compared to promotion-focused users. These finding have implications for online discussion forums in terms of how to manage users effectively and also how to prevent unintended criticism