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

Francesco Bianchi, Roberto Gomez Cram and Howard Kung

No 28749, NBER Working Papers from National Bureau of Economic Research, Inc

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: 2021-04
New Economics Papers: this item is included in nep-cdm
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Citations: View citations in EconPapers (9)

Published as Francesco Bianchi & Roberto Gómez-Cram & Howard Kung & Lauren Cohen, 2024. "Using Social Media to Identify the Effects of Congressional Viewpoints on Asset Prices," The Review of Financial Studies, vol 37(7), pages 2244-2272.

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Related works:
Journal Article: Using Social Media to Identify the Effects of Congressional Viewpoints on Asset Prices (2024)
Working Paper: Using Social Media to Identify the Effects of Congressional Viewpoints on Asset Prices (2022)
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