Social media posts and stock returns: The Trump factor

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carl Ajjoub ◽  
Thomas Walker ◽  
Yunfei Zhao
Keyword(s):  
Social Media ◽  
Stock Returns ◽  
Stock Prices ◽  
Stock Price ◽  
The United States ◽  
Science Field ◽  
Content Type ◽  
Social Media Platforms ◽  
Media Firms ◽  
The Impact

PurposeThis paper explores the effects of US President Donald Trump's Twitter messages (tweets) on the stock prices of media and non-media companies.Design/methodology/approachThe authors’ empirical analysis considers all Twitter messages posted by Donald Trump from May 26, 2016 (the date he passed the threshold of 1,237 delegates required to guarantee his presidential nomination) to August 30, 2018. The authors accessed President Trump's tweets through http://www.trumptwitterarchive.com, which provides links to all Twitter messages the President has ever posted. Of the 6,983 presidential tweets during our sample period, the authors select 513 messages that mention companies that are publicly traded in the United States for this study. The selected messages are then classified as having a positive, neutral or negative sentiment. The authors employ a series of univariate and multivariate tests as well as Heckman two-step regressions and partial least squares regressions to examine the effect of the President's tweets on the stock prices of the firms he tweets about.FindingsFor media firms, the authors find that positive tweets have a pronounced positive stock price impact, whereas negative and neutral tweets have little or no effect. For non-media firms, the authors observe the opposite: negative tweets tend to be associated with significant stock price declines, whereas neutral and positive tweets incur weakly positive stock price reactions. To a large extent, these stock price declines reverse on the following day. The authors further find that the President's reiteration of information that is already known by the market incurs an additional stock price reaction. The President's attitude towards the news appears to play a major role in this context.Originality/valueThe authors contribute to the literature by offering various new insights regarding the effect social media has on the stock markets. In addition, this paper expands the emerging strand of literature that explores how President Trump affects the stock prices of firms he tweets about. This paper differs from prior studies in this area by considering a broader range of tweets, by controlling for potential selection biases, by differentiating between Trump's tweets about media and non-media firms and by exploring the impact of “old” vs “new” news based on whether the President repeats information that is already known to the market. If social media posts by single influential people are found to affect markets, they may create trading opportunities for investors and financial managers and risk arbitrage opportunities for arbitrageurs. In the political science field, the findings of this research provide valuable insights into how politicians can employ social media platforms to affect the public, and the differential influence of nominees and politicians in office. Finally, our study gives corporations that wish to back a certain campaign or a candidate in an election a better idea of the possible risks and benefits of their actions, considering that candidates or politicians could post negative messages on social media platforms targeting companies that backed their opponents.

Does the second wave of COVID-19 undermine corporate immunity? International evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huy Viet Hoang ◽  
Cuong Nguyen ◽  
Khanh Hoang
Keyword(s):  
Stock Returns ◽  
Stock Price ◽  
Fixed Effects ◽  
Management Strategies ◽  
The United States ◽  
Least Square ◽  
Content Type ◽  
The Impact ◽  
Second Wave ◽  
Practical Implications

PurposeThis study compares the impact of the COVID-19 pandemic on stock returns in the first two waves of infection across selected markets, given built-in corporate immunity before the global outbreak.Design/methodology/approachThe data are collected from listed firms in five markets that have experienced the second wave of COVID-19 contagion, namely the United States (US), Australia, China, Hong Kong and South Korea. The period of investigation in this study ranges from January 24 to August 28, 2020 to cover the first two COVID-19 waves in selected markets. The study estimates the research model by employing the ordinary least square method with fixed effects to control for the heterogeneity that may confound the empirical outcomes.FindingsThe analysis reveals that firms with larger size and more cash reserves before the COVID-19 outbreak have better stock performance under the first wave; however, these advantages impede stock resilience during the second wave. Corporate governance practices significantly influence stock returns only in the first wave as their effects fade when the second wave emerges. The results also suggest that in economies with greater power distance, although stock price depreciation was milder in the first wave, it is more intense when new cases again surge after the first wave was contained.Practical implicationsThis paper provides practical implications for corporate managers, policymakers and governments concerning crisis management strategies for COVID-19 and future pandemics.Originality/valueThis study is the first to evaluate built-in corporate immunity before the COVID-19 shock under successive contagious waves. Besides, this study accentuates the importance of cultural understanding in weathering the ongoing pandemic across different markets.

scholarly journals Do Blockchain Stocks Exhibit More Herding Behaviour than Traditional Stocks?

2021 ◽  
Vol 10 (4) ◽  
Author(s):  
Prakhar Goel ◽  
Abhishek Dev
Keyword(s):  
Social Media ◽  
Stock Returns ◽  
Automotive Industry ◽  
Stock Prices ◽  
Stock Price ◽  
Absolute Deviation ◽  
Cross Sectional ◽  
Price Movements ◽  
The Impact ◽  
Stock Price Movements

While the volatile behaviour of cryptocurrency is extensively studied, the stock market’s blockchain sector, which has not been given much attention in the academic world, operates very differently from traditional stock industries. The paper hypothesizes that blockchain stocks exhibit more herding behaviour than traditional stocks and uses quantitative data analysis techniques to study it. The automotive industry is taken as a representative of traditional stocks. Cross-Sectional Absolute Deviation, the academic standard for herding behaviour, is used as the primary comparative measure between blockchain and automotive stocks. It reveals that blockchain industry has significant herding, while rational pricing mechanisms prevail in the automotive industry. Supporting this conclusion, a correlation matrix of stock prices of small market capitalisation firms in each industry is constructed, analysing how closely stock price movements in an industry are related. The correlation coefficient for blockchain stocks is 20% higher than the coefficient for automotive stocks. This indicates that blockchain stocks likely exhibit higher levels of herding. The impact of social media on stock price movements in the two industries is analysed by conducting a correlation study between Google Trends data for industry-related keywords and individual stock returns. The blockchain industry saw a significantly higher correlation, likely suggesting that social media has a stronger influence on blockchain stock price movements. Finally, the paper provides possible explanations for why herding behaviour is more prominent in the blockchain stocks compared to traditional stocks. These include absence of traditional stock valuation metrics, lack of financial knowledge and role of social media.

scholarly journals 1414. #Vaccine Twitter Influencers: is it Just About Reach and Followers?

2020 ◽  
Vol 7 (Supplement_1) ◽  
pp. S714-S715
Author(s):  
Jean-Etienne Poirrier ◽  
Theodore Caputi ◽  
John Ayers ◽  
Mark Dredze ◽  
Sara Poston ◽  
...  
Keyword(s):  
United States ◽  
Social Media ◽  
Standard Deviation ◽  
Small Proportion ◽  
The United States ◽  
Research Support ◽  
Policy Makers ◽  
Media Messages ◽  
Social Media Platforms ◽  
The Impact

Abstract Background A small number of powerful users (“influencers”) dominates conversations on social media platforms: less than 1% of Twitter accounts have at least 3,000 followers and even fewer have hundreds of thousands or millions of followers. Beyond simple metrics (number of tweets, retweets...) little is known about these “influencers”, particularly in relation to their role in shaping online narratives about vaccines. Our goal was to describe influential Twitter accounts that are driving conversations about vaccines and present new metrics of influence. Methods Using publicly-available data from Twitter, we selected posts from 1-Jan-2016 to 31-Dec-2018 and extracted the top 5% of accounts tweeting about vaccines with the most followers. Using automated classifiers, we determined the location of these accounts, and grouped them into those that primarily tweet pro- versus anti-vaccine content. We further characterized the demographics of these influencer accounts. Results From 25,381 vaccine-related tweets available in our sample representing 10,607 users, 530 accounts represented the top 5% by number of followers. These accounts had on average 1,608,637 followers (standard deviation=5,063,421) and 340,390 median followers. Among the accounts for which sentiment was successfully estimated by the classifier, 10.4% (n=55) posted anti-vaccine content and 33.6% (n=178) posted pro-vaccine content. Of the 55 anti-vaccine accounts, 50% (n=18) of the accounts for which location was successfully determined were from the United States. Of the 178 pro-vaccine accounts, 42.5% (n=54) were from the United States. Conclusion This study showed that only a small proportion of Twitter accounts (A) post about vaccines and (B) have a high follower count and post anti-vaccine content. Further analysis of these users may help researchers and policy makers better understand how to amplify the impact of pro-vaccine social media messages. Disclosures Jean-Etienne Poirrier, PhD, MBA, The GSK group of companies (Employee, Shareholder) Theodore Caputi, PhD, Good Analytics Inc. (Consultant) John Ayers, PhD, GSK (Grant/Research Support) Mark Dredze, PhD, Bloomberg LP (Consultant)Good Analytics (Consultant) Sara Poston, PharmD, The GlaxoSmithKline group of companies (Employee, Shareholder) Cosmina Hogea, PhD, GlaxoSmithKline (Employee, Shareholder)

Market reactions to the inclusion of people with disabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Claudia Araceli Hernández González
Keyword(s):  
Event Study ◽  
Stock Prices ◽  
Stock Price ◽  
Abnormal Returns ◽  
People With Disabilities ◽  
Market Reactions ◽  
Content Type ◽  
Study Methodology ◽  
Research Advance ◽  
The Impact

PurposeThis study aims to provide evidence of market reactions to organizations' inclusion of people with disabilities. Cases from financial journals in 1989–2014 were used to analyze the impact of actions taken by organizations to include or discriminate people with disabilities in terms of the companies' stock prices.Design/methodology/approachThis research is conducted as an event study where the disclosure of information on an organization's actions toward people with disabilities is expected to impact the organization's stock price. The window of the event was set as (−1, +1) days. Stock prices were analyzed to detect abnormal returns during this period.FindingsResults support the hypotheses that investors value inclusion and reject discrimination. Furthermore, the impact of negative actions is immediate, whereas the impact of positive actions requires at least an additional day to influence the firm's stock price. Some differences among the categories were found; for instance, employment and customer events were significantly more important to a firm's stock price than philanthropic actions. It was observed that philanthropic events produce negative abnormal returns on average.Originality/valueThe event study methodology provides a different perspective to practices in organizations regarding people with disabilities. Moreover, the findings in this research advance the literature by highlighting that organizations should consider policies and practices that include people with disabilities.

Investigating the effects of consistent visual identity on social media

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Harsandaldeep Kaur ◽  
Kanwal Roop Kaur
Keyword(s):  
Social Media ◽  
Online Marketing ◽  
Media Environment ◽  
Content Type ◽  
Visual Identity ◽  
Company Reputation ◽  
Social Media Platforms ◽  
Sphere Of Influence ◽  
The Impact ◽  
Practical Implications

Purpose Although the prominence of social media for companies is widely acknowledged, a close examination of the literature reveals a lack of empirical research pertaining to the effect of consistency specifically on social media. Therefore, the purpose of this paper is to fill the gap in social media communication concerning the effect of consistent visual identity on social media users. Design/methodology/approach The study executed an experiment 2 (corporate visual identity condition) × 2 (organization type) between subjects design to map the effects of consistent visual identity on social media users appreciation of the visual identity, attitude toward the company, reputation and intention to commit to a company on social media. Findings The results of the study indicated the significant effects of consistent visual identity on social media users over the inconsistent conditions of visual identity on all dependent variables. Furthermore, there were insignificant main effects of organization type on general judgment, credibility, distinctiveness and reputation of the company. Practical implications This study presents the effects of consistent visual identity on social media platforms. The research will help marketing academicians, graphic designers and social media practitioners in online marketing by using its practical implications to strategically positioning their corporate brand in a social media environment. Originality/value This study provides novel insights on the impact of consistency on social media users. This is the first study to determine the role of consistent visual identity in the social media environment. It thereby adds to the literature of visual identity by developing the sphere of influence of consistency and its effects toward the user’s attitude.

Is Snapchat Discover really a news platform? News snacking from social media and users’ knowledge of current affairs

2021 ◽  
Vol 00 (00) ◽  
pp. 1-23
Author(s):  
Jayeon Lee
Keyword(s):  
Social Media ◽  
Negative Relationship ◽  
The United States ◽  
Journalism Studies ◽  
Soft News ◽  
Current Affairs ◽  
Social Media Platforms ◽  
The Media ◽  
The Impact ◽  
Negative Predictor

The role of the media in informing the public has long been a central topic in journalism studies. Given that social media platforms have become today’s major source of news, it is important to understand the impact of social media use on citizens’ knowledge of current affairs. While people get news from multiple platforms throughout the day, most research treats social media as a single entity or examines only one or two major platforms ignoring newer social media platforms. Drawing on news snacking framework, this study investigates how using some of today’s most popular social media platforms predicts users’ current affairs knowledge, with particular attention to Snapchat and its news section Discover. A survey conducted in the United States (N=417) demonstrated that each of the platforms is distinct: Twitter is a strongly positive predictor of knowledge, Facebook a marginally significant negative predictor, Reddit a significantly negative predictor and Instagram not a significant predictor. Overall Snapchat use has no significant association with users’ knowledge of current affairs, whereas Discover use has a negative relationship. Further analysis revealed that mere exposure to Snapchat is positively related to soft-news knowledge and attention to Discover is negatively related to hard-news knowledge.

Rumors on the Net: A Brackish Suspension of Speech and Hate

2019 ◽  
pp. 174387211988012 ◽  
Author(s):  
Anne Wagner ◽  
Sarah Marusek
Keyword(s):  
United States ◽  
Social Media ◽  
Hate Speech ◽  
Public Memory ◽  
The United States ◽  
Online Social Media ◽  
Cyber Culture ◽  
Social Media Platforms ◽  
The Impact ◽  
Mob Mentality

The legitimacy of public memory and socially normative standards of civility is questioned through rumors that abound on online social media platforms. On the Net, the proclivity of rumors is particularly prone to acts of bullying and frameworks of hate speech. Legislative attempts to limit rumors operate differently in France and throughout Europe from the United States. This article examines the impact of online rumors, the mob mentality, and the politicization of bullying critics within a cyber culture that operates within the limitations of law.

scholarly journals Macroeconomic News and Stock Returns in the United States and Germany

2006 ◽  
Vol 7 (2) ◽  
pp. 189-210 ◽  
Author(s):  
Norbert Funke ◽  
Akimi Matsuda
Keyword(s):  
United States ◽  
Interest Rates ◽  
Stock Returns ◽  
Stock Prices ◽  
The United States ◽  
Good News ◽  
Macroeconomic News ◽  
Hourly Data ◽  
Different Types ◽  
The Impact

Abstract Using daily data for the January 1997 to June 2002 period, we analyze similarities and differences in the impact of macroeconomic news on stock returns in the United States and Germany. We consider 27 different types of news for the United States and 12 different types of news for Germany. For the United States, we present evidence for asymmetric reactions of stock prices to news. In a boom (recession) period, bad (good) news on GDP growth and unemployment or lower (higher) than expected interest rates may be good news for stock prices. In the period under consideration there is little evidence for asymmetric effects in Germany. However, in the case of Germany, international news appears at least as important as domestic news. There is no evidence that US stock prices are influenced by German news. The analysis of bi-hourly data for Germany confirms these results.

Social media in government offices: usage and strategies

2020 ◽  
Vol 72 (4) ◽  
pp. 445-462
Author(s):  
Gal Yavetz ◽  
Noa Aharony
Keyword(s):  
Social Media ◽  
Digital Media ◽  
Government Agencies ◽  
Content Type ◽  
Government Organizations ◽  
Study Approach ◽  
Social Media Platforms ◽  
Government Websites ◽  
Use Of Social Media ◽  
The Impact

PurposeThe current study seeks to present and examine the strategies, management and dissemination of information on social media platforms by Israeli government organizations and agencies.Design/methodology/approachThe article uses the “Case Study” approach, through semi-structured, in-depth interviews conducted with directors in charge of the use of social media in government departments.FindingsThe findings indicate that government agencies tend to favor Facebook over other social network platforms, in order to reach the widest possible audience. They do this by adhering to the platform's limitations, such as regularly using sponsored advertising to increase reach and visibility, and also by publishing visual content, such as videos and images, at the expense of text. In addition, the impact of respondents to adopt social media outweighs the use and importance awarded to traditional government websites. A clear preference is evident toward cultivating and strengthening existing information on social media at the expense of further developing official websites.Originality/valueFindings and conclusions from this type of research can help digital media directors and content editors in government agencies, to improve the quality of their content and improve the accessibility of the information they share online. In addition, the findings of the study strengthen the growing body of knowledge focused on the relationship between government ministries and social media.

Driving consumer–brand engagement and co-creation by brand interactivity

2020 ◽  
Vol 38 (4) ◽  
pp. 523-541 ◽  
Author(s):  
Man Lai Cheung ◽  
Guilherme D. Pires ◽  
Philip J. Rosenberger ◽  
Mauro Jose De Oliveira
Keyword(s):  
Social Media ◽  
Information Transfer ◽  
Longitudinal Design ◽  
Social Media Marketing ◽  
Brand Value ◽  
Content Type ◽  
Brand Engagement ◽  
Cognitive Information ◽  
Social Media Platforms ◽  
The Impact

PurposeThis paper investigates the impact of brand interactivity within social media on consumer–brand engagement and its related outcomes, including consumers' intention of co-creating brand value and future repurchase of the same brand.Design/methodology/approachThe theoretical framework is tested for a durable technology product, a smartphone. Data was collected in Brazil from 408 users utilizing a self-administered online survey. Data analysis uses partial least squares–structural equation modelling (PLS-SEM).FindingsEntertainment interactivity, cognitive information-transfer interaction and cognitive up-to-date information interactivity are the key elements directly influencing consumer–brand engagement, enhancing consumers' intention to co-create brand value and to repurchase the brand. Importantly, the impact of interactivity ease of use and customization interactivity on consumer–brand engagement and its related outcomes is non-significant. This is inconsistent with previous studies on consumer–brand engagement.Research limitations/implicationsThe research contributes to the literature by providing an understanding of how to use brand interactivity elements on social-media platforms to strengthen consumer–brand engagement for durable technology products, such as smartphones in Brazil. However, this study is cross-sectional in nature and focus is solely on smartphones in Brazil. Future research might consider a longitudinal design and include comparisons between countries with diverse cultures as well as other industries and product types to enhance the generalizability of the findings.Practical implicationsMarketers may heighten consumer–brand engagement by using content that is entertaining, current and trendy. Incorporating positive referrals on social-media platforms encourages consumers to co-create brand value and to repurchase the same brand in the future.Originality/valueExamination of the role of social-media marketing in the marketing literature largely overlooks the impact of elements of brand interactivity within social media on consumer–brand engagement. This article contributes to social-media marketing and consumer–brand engagement research by empirically testing a theoretical model, confirming that specific elements of brand interactivity within social media – including entertainment interactivity, cognitive information-transfer interaction and cognitive up-to-date information interactivity – are critical drivers in the process of strengthening consumer–brand engagement in Brazil.

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