Using Social Media to Identify the Effects of Congressional Viewpoints on Asset Prices

Francesco Bianchi, Roberto Gómez-Cram and Howard Kung

The Review of Financial Studies, 2024, vol. 37, issue 7, 2244-2272

Abstract: We use a high-frequency identification approach to document that individual politicians affect asset prices. We exploit the regular flow of viewpoints contained in Congress members’ tweets. Supportive (critical) tweets increase (decrease) the stock prices of the targeted firm and the corresponding industry in minutes around the tweet. The bulk of the stock price effects is concentrated in the tweets revealing news about future legislative action. The effects are amplified around committee meeting days, especially when the tweet originates from committee members and influential politicians. Overall, we show that Congress members’ social media accounts are an important source of political news.

JEL-codes: D72 G14 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1093/rfs/hhae001 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Using Social Media to Identify the Effects of Congressional Viewpoints on Asset Prices (2022)
Working Paper: Using Social Media to Identify the Effects of Congressional Viewpoints on Asset Prices (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:rfinst:v:37:y:2024:i:7:p:2244-2272.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

The Review of Financial Studies is currently edited by Itay Goldstein

More articles in The Review of Financial Studies from Society for Financial Studies Oxford University Press, Journals Department, 2001 Evans Road, Cary, NC 27513 USA.. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().