Examining stock markets and societal mood using Internet memes

Sang Hoon Jung and Yong Jin Jeong

Journal of Behavioral and Experimental Finance, 2021, vol. 32, issue C

Abstract: Using Internet memes collected from Reddit, we extract variables to represent societal mood and examine their relationships with various stock market index prices. Through this, we analyse the level of sentimentality information incorporated in stock markets. The results show that societal mood variables representing sentiment intensity and user engagement are most important and significant in explaining index prices. Large-cap U.S. indices show more prominent relationships with societal mood than small-cap international indices, with variabilities in sentimentality information incorporation in different timeframes. The results also show that common overall societal sentimentality information is present in both memes and index prices.

Keywords: Internet memes; Societal mood; Stock markets (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:32:y:2021:i:c:s2214635021001192

DOI: 10.1016/j.jbef.2021.100575

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