Social media, news media and the stock market
File(s)Buzz_JVW_accepted.pdf (1.02 MB)
Accepted version
Author(s)
Jiao, Peiran
Veiga, André
Walther, Ansgar
Type
Journal Article
Abstract
We study the effect on stock volatility and turnover of coverage by traditional news media and social media. We find that coverage by traditional news media predicts decreases in subsequent volatility and turnover, but coverage by social media predicts increasesin volatility and turnover. We show that these patters are consistent with a model of “echo chambers”, where social networks repeat news, but some investors interpret repeated signals as genuinely new information.
Date Issued
2020-08-01
Date Acceptance
2020-03-03
Citation
Journal of Economic Behavior & Organization, 2020, 176, pp.63-90
ISSN
0167-2681
Publisher
Elsevier BV
Start Page
63
End Page
90
Journal / Book Title
Journal of Economic Behavior & Organization
Volume
176
Copyright Statement
© 2020 Elsevier B.V. All rights reserved. This manuscript version is made available under the CC-BY-NC-ND 4.0 license https://creativecommons.org/licenses/by-nc-nd/4.0/
Identifier
https://www.sciencedirect.com/science/article/pii/S0167268120300676?via%3Dihub
Publication Status
Published
Date Publish Online
2020-06-05