X Bots and Earnings Announcements

Jan Hanousek (), Jan Hanousek () and Konstantin Sokolov ()
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Jan Hanousek: Fogelman College of Business Economics, University of Memphis, United States
Jan Hanousek: Department of Department of Finance and Accounting, Faculty of Business and Economics, Mendel University in Brno, Czech Republic; CEPR, London, United Kingdom
Konstantin Sokolov: Fogelman College of Business Economics, University of Memphis, United States
Authors registered in the RePEc Author Service: Jan Hanousek and Jan Hanousek Jr. ()

No 2025-101, MENDELU Working Papers in Business and Economics from Mendel University in Brno, Faculty of Business and Economics

Abstract: This paper relies on shocks to the CAPTCHA technology to study the effects of social media bot activity. We observe that bots drive a large amount of attention to corporate X accounts around earnings announcements. In line with theoretical research, bot activity is a significant predictor of investor disagreement, which is persistent long-term. Moreover, social media bots increase analyst dispersion for the following earnings announcement. The failure of the CAPTCHA implementation technology leads to negative abnormal returns, and the failure of CAPTCHA bypassing technology leads to positive abnormal returns.

Keywords: Investor disagreement; analyst disagreement; quarterly earnings; X bots; Twitter bots. (search for similar items in EconPapers)
JEL-codes: C26 D22 G11 G14 G30 (search for similar items in EconPapers)
Pages: 33
Date: 2025-03
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http://ftp.mendelu.cz/RePEc/men/wpaper/101_2025.pdf Full text (application/pdf)

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Working Paper: X Bots and Earnings Announcements (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:men:wpaper:101_2025

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