Facebook Drives Behavior of Passive Households in Stock Markets

Milla Siikanen; Kęstutis Baltakys; Juho Kanniainen; Ravi Vatrapu; Raghava Rao Mukkamala; Abid Hussain

doi:10.1016/j.frl.2018.03.020

Facebook Drives Behavior of Passive Households in Stock Markets

Milla Siikanen, Kęstutis Baltakys, Juho Kanniainen, Ravi Vatrapu, Raghava Rao Mukkamala, Abid Hussain

Institut for Digitalisering

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › peer review

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Abstract

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.

Originalsprog	Engelsk
Tidsskrift	Finance Research Letters
Vol/bind	27
Sider (fra-til)	208-213
Antal sider	6
ISSN	1544-6123
DOI	https://doi.org/10.1016/j.frl.2018.03.020
Status	Udgivet - dec. 2018

Emneord

Investor behavior
Social media
Stock markets
Investor sophistication
Decision making

Adgang til dokumentet

10.1016/j.frl.2018.03.020Licens: CC BY-NC-ND

ravi_vatrapu_et_al_facebook_drives_behavior_publishersversionForlagets udgivne version, 172 KBLicens: CC BY-NC-ND

https://www.sciencedirect.com/science/article/pii/S1544612318301326/pdfft?md5=b7c3cf1e35af9c5c15ae452a431f7871&pid=1-s2.0-S1544612318301326-main.pdfLicens: CC BY-NC-ND

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Citationsformater

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title = "Facebook Drives Behavior of Passive Households in Stock Markets",

abstract = "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{\textquoteright} decision making in stock markets with a unique data on investors{\textquoteright} 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.",

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T1 - Facebook Drives Behavior of Passive Households in Stock Markets

AU - Siikanen, Milla

AU - Baltakys, Kęstutis

AU - Kanniainen, Juho

AU - Vatrapu, Ravi

AU - Mukkamala, Raghava Rao

AU - Hussain, Abid

PY - 2018/12

Y1 - 2018/12

N2 - 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.

AB - 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.

KW - Investor behavior

KW - Social media

KW - Stock markets

KW - Investor sophistication

KW - Decision making

KW - Investor behavior

KW - Social media

KW - Stock markets

KW - Investor sophistication

KW - Decision making

U2 - 10.1016/j.frl.2018.03.020

DO - 10.1016/j.frl.2018.03.020

M3 - Journal article

SN - 1544-6123

VL - 27

SP - 208

EP - 213

JO - Finance Research Letters

JF - Finance Research Letters

ER -