Market Reaction to iPhone Rumors

Terence Tai Leung Chong, Zhang Wu and Yuchen Liu

MPRA Paper from University Library of Munich, Germany

Abstract: The paper studies the effects of new product rumors about the iPhone on the stock price of the Apple company. We scrape iPhone rumors from Macrumors.com, and obtain a dataset covering 1,264 articles containing 180 words on average bet-ween January 2002 and December 2015. Moreover, we construct a market-decided lexicon to transform qualitative information into quantitative data, and analyze what type of words and what information embedded in the rumors are apt to impact on Apple's stock price. Unlike previous studies, we do not rely on the widely-adopted Harvard-IV-4 dictionary, as the coefficients of the words from the dictionary are neither significant nor consistent with their polarities, compared with our results. The paper obtains three main findings. First, the spread of rumors has a significant impact on the stock price. Second, positive words, rather than negative words, play an important role in affecting the stock price. Third, the stock price is highly sensitive to the words related to the appearance of the iPhone.

Keywords: stock price; iPhone; rumors; market-decided lexicon (search for similar items in EconPapers)
JEL-codes: G14 (search for similar items in EconPapers)
Date: 2019-01-25
New Economics Papers: this item is included in nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/92014/1/MPRA_paper_92014.pdf original version (application/pdf)

Related works:
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:pra:mprapa:92014

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).