{"title":"The Good, the Bad, and the Social Media: Financial Implications of Social Media Reactions to Firm-Related News","authors":"Jing Peng, Juheng Zhang, R. Gopal","doi":"10.1080/07421222.2022.2096547","DOIUrl":null,"url":null,"abstract":"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 is far from clear. Employing data on financial news, tweets posted by firms and investors, and daily stock prices, we find that firms are more responsive to news with positive sentiment and low uncertainty, whereas investors are more responsive to news with high uncertainty. Moreover, the increased tweeting activities of firms and investors can improve the stock returns of firms. We further show that investors’ social media reactions to news and the subsequent influence on stock returns depend on firm size. This paper provides a fuller picture of how firms, investors, and the stock market react to financial news, and reveals the nuanced interactions among them. We discuss how firms and investors can better leverage social media to improve stock performance.","PeriodicalId":50154,"journal":{"name":"Journal of Management Information Systems","volume":"39 1","pages":"706 - 732"},"PeriodicalIF":5.9000,"publicationDate":"2022-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"4","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Management Information Systems","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1080/07421222.2022.2096547","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"COMPUTER SCIENCE, INFORMATION SYSTEMS","Score":null,"Total":0}
引用次数: 4
Abstract
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 is far from clear. Employing data on financial news, tweets posted by firms and investors, and daily stock prices, we find that firms are more responsive to news with positive sentiment and low uncertainty, whereas investors are more responsive to news with high uncertainty. Moreover, the increased tweeting activities of firms and investors can improve the stock returns of firms. We further show that investors’ social media reactions to news and the subsequent influence on stock returns depend on firm size. This paper provides a fuller picture of how firms, investors, and the stock market react to financial news, and reveals the nuanced interactions among them. We discuss how firms and investors can better leverage social media to improve stock performance.
期刊介绍：
Journal of Management Information Systems is a widely recognized forum for the presentation of research that advances the practice and understanding of organizational information systems. It serves those investigating new modes of information delivery and the changing landscape of information policy making, as well as practitioners and executives managing the information resource.
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
