Paying attention to social media stocks

Wan-Jiun Paul Chiou, Heather S. Knewtson and John R. Nofsinger

International Review of Economics & Finance, 2019, vol. 59, issue C, 106-119

Abstract: Social media has reshaped business models, economies, politics, and culture around the world. In this paper, we identified social media stocks from various sectors by using a strict, academic definition and then studied their performance and return characteristics. Multivariate regression results demonstrate that being recognized as a social media firm yields extra return. The performance of social media stocks is not associated with macro-level sentiment, but rather with firm-level attention paid by potential investors. Causality tests indicate that the default risk premium and volatility have incremental power in explaining the performance of social media stocks.

Keywords: Social media; Social gaming; Social networking; Sentiment; Investor attention (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:59:y:2019:i:c:p:106-119

DOI: 10.1016/j.iref.2018.08.009

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