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The good, the bad, and the social media : financial implications of social media reactions to firm-related news
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Peng, Jing, Zhang, Juheng and Gopal, Ram D. (2022) The good, the bad, and the social media : financial implications of social media reactions to firm-related news. Journal of Management Information Systems, 39 (3). pp. 706-732. doi:10.1080/07421222.2022.2096547 ISSN 0742-1222.
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WRAP-The-good-the-bad-and-the-social-media-Gopal-2022.pdf - Accepted Version Embargoed item. Restricted access to Repository staff only until 26 February 2024. Contact author directly, specifying your specific needs. - Requires a PDF viewer. Download (717Kb) |
Official URL: https://doi.org/10.1080/07421222.2022.2096547
Abstract
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.
| Item Type: | Journal Article | ||||||
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| Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce H Social Sciences > HG Finance H Social Sciences > HM Sociology |
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| Divisions: | Faculty of Social Sciences > Warwick Business School | ||||||
| Library of Congress Subject Headings (LCSH): | Social media—Economic aspects, Social media—Marketing, Mass media and business, Twitter (Firm) -- Economic aspects, Small business -- Technological innovations, User-generated content -- Economic aspects, Stocks -- Prices | ||||||
| Journal or Publication Title: | Journal of Management Information Systems | ||||||
| Publisher: | Routledge | ||||||
| ISSN: | 0742-1222 | ||||||
| Official Date: | 26 August 2022 | ||||||
| Dates: |
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| Volume: | 39 | ||||||
| Number: | 3 | ||||||
| Page Range: | pp. 706-732 | ||||||
| DOI: | 10.1080/07421222.2022.2096547 | ||||||
| Status: | Peer Reviewed | ||||||
| Publication Status: | Published | ||||||
| Reuse Statement (publisher, data, author rights): | This is an Accepted Manuscript version of the following article, accepted for publication in Journal of Management Information Systens. Peng, Jing, Zhang, Juheng and Gopal, Ram (2022) The good, the bad, and the social media : financial implications of social media reactions to firm-related news. Journal of Management Information Systems . (In Press). It is deposited under the terms of the Creative Commons Attribution-NonCommercial License (http://creativecommons.org/licenses/by-nc/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited.” | ||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||
| Date of first compliant deposit: | 28 March 2022 | ||||||
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