 Does connection with @realDonaldTrump affect stock prices?Rui Fan, Oleksandr Talavera () and Vu Tran No 2018-07, Working Papers from Swansea University, School of Management Abstract: This study investigates whether investors react to signals of an association between a firm and Donald Trump indicated by tweets containing both words 'Trump' (or '@realDonaldTrump') and a S&P500 firm name. Our results reveal that a large number of such tweets ignite speculations about a political connection between a firm and the US's President, thus affecting investors' trading behaviors. In particular, a rise in these tweets induces significant increases in trading volatility and trading volume. However, we do not find such great impacts on stock returns, suggesting that the speculations are more likely to spread among small non-institutional investors. Further investigations show that sentiments embedded in these tweets have limited influence. There is evidence of a changing market behavior towards such tweets centered by the President's inauguration. Keywords: Twitter; US Election; stock market; investor sentiment; text classification; computational linguistics. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:swn:wpaper:2018-07 Access Statistics for this paper More papers in Working Papers from Swansea University, School of Management Contact information at EDIRC. |
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