The Good, the Bad, and the Social Media: Financial Implications of Social Media Reactions to Firm-Related News
| Autor: | Jing Peng, Juheng Zhang, Ram Gopal |
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| Rok vydání: | 2022 |
| Předmět: | |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 0742-1222 |
| DOI: | 10.2139/ssrn.3567201 |
| Popis: | Firms and investors often react to financial news on social media. However, how they react to news of different nature and whether their reactions influence the stock market are far from clear. Employing data from multiple sources, we examine how the tweeting intensities of firms and investors vary with the sentiment and uncertainty of financial news, as well as how the changes in their tweeting intensities affect stock returns. Our analysis reveals several interesting findings. First, firms are more responsive to news with positive sentiment and low uncertainty, whereas investors are more responsive to news with high uncertainty. Second, when the tweeting intensities of firms and investors surge, the stock returns of focal firms rise. Third, investors tweet more about smaller firms facing uncertain news, and the increased volume of investor tweets, in turn, has a stronger effect on the stock returns of smaller firms. |
| Databáze: | OpenAIRE |
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