Investor attention and corporate leverage manipulation

This study indicates that retail shareholders voicing their opinions through social media effectively reducing the leverage manipulation level of enterprises. Mechanism examination reveals that the effectiveness of information environment is vital mechanisms by which retail shareholders mitigate leverage manipulation level. Heterogeneity analysis indicates in companies with low level of confidence, the impact of small and medium-sized shareholders voicing their opinions on mitigating corporate leverage manipulation is more pronounced. The conclusions of this article are not only crucial for innovating corporate governance practices in the digital economy era but also hold significant implications for retail investors in safeguarding their own interests.