Social media, news media and the stock market

Peiran Jiao, André Veiga and Ansgar Walther

Journal of Economic Behavior & Organization, 2020, vol. 176, issue C, 63-90

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.

Keywords: Social media; News media; Asset prices (search for similar items in EconPapers)
JEL-codes: D83 G02 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (19)

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Working Paper: Social Media, News Media and the Stock Market (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:176:y:2020:i:c:p:63-90

DOI: 10.1016/j.jebo.2020.03.002

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