 The relevance and influence of social media posts on investment decisions of young and social media-savvy individuals — An experimental approach based on TweetsLars Kuerzinger and Philipp Stangor Journal of Behavioral and Experimental Finance, 2024, vol. 44, issue C Abstract: We conducted an experiment to examine the role of positive and negative tweets (generated by AI) on investment behavior of young and social media-savvy individuals, comparing them with provided historical and fundamental financials. Through mediator analysis, we discovered that positive tweets have a significantly positive mediating effect on investment amounts, while negative tweets have a negative impact. Importantly, we found that this effect is not primarily driven by the perception of the tweets; rather, positive tweets influence individuals’ perception of a company’s financials which is the most influencing factor in individuals’ investment decision. In this manner our study contributes to the existing literature by (1) proving evidence for a causal effect of social media investor sentiment on investment behavior on capital markets and especially (2) focussing how the influence channels are built. Keywords: Investor sentiment; Social media; Experimental finance; Behavioral finance; Efficient market hypothesis; Mediator analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:44:y:2024:i:c:s2214635024001205 DOI: 10.1016/j.jbef.2024.101005 Access Statistics for this article Journal of Behavioral and Experimental Finance is currently edited by Michael Dowling and Jürgen Huber More articles in Journal of Behavioral and Experimental Finance from Elsevier |
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