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Facebook Drives Behavior of Passive Households in Stock Markets

Research output: Contribution to journalJournal article

Recent studies using data on social media and stock markets have mainly focused on predicting stock returns. Instead of predicting stock price movements, we examine the relation between Facebook data and investors’ decision making in stock markets with a unique data on investors’ transactions on Nokia. We find that the decisions to buy versus sell are associated with Facebook data especially for passive households and for nonprofit organizations. At the same time, it seems that more sophisticated investors—financial and insurance institutions—are behaving independently from Facebook activities.

Publication information

Original languageEnglish
JournalFinance Research Letters
Number of pages6
ISSN1544-6123
DOIs
StatePublished - 23 Mar 2018

Bibliographical note

Epub ahead of print. Published online: 23. March 2018

    Research areas

  • Investor behavior, Social media, Stock markets, Investor sophistication, Decision making

ID: 56172855