Facebook Drives Behavior of Passive Households in Stock Markets

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

Research output: Contribution to journalJournal articleResearchpeer-review

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.
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.
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

Keywords

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

Cite this

Siikanen, Milla ; Baltakys, Kęstutis ; Kanniainen, Juho ; Vatrapu, Ravi ; Mukkamala, Raghava Rao ; Hussain, Abid. / Facebook Drives Behavior of Passive Households in Stock Markets. In: Finance Research Letters. 2018
@article{530c49788370435b93fdfc3d251725b3,
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’ 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.",
keywords = "Investor behavior, Social media, Stock markets, Investor sophistication, Decision making, Investor behavior, Social media, Stock markets, Investor sophistication, Decision making",
author = "Milla Siikanen and Kęstutis Baltakys and Juho Kanniainen and Ravi Vatrapu and Mukkamala, {Raghava Rao} and Abid Hussain",
note = "Epub ahead of print. Published online: 23. March 2018",
year = "2018",
month = "3",
day = "23",
doi = "10.1016/j.frl.2018.03.020",
language = "English",
journal = "Finance Research Letters",
issn = "1544-6123",
publisher = "Academic Press",

}

Facebook Drives Behavior of Passive Households in Stock Markets. / Siikanen, Milla; Baltakys, Kęstutis; Kanniainen, Juho; Vatrapu, Ravi; Mukkamala, Raghava Rao; Hussain, Abid.

In: Finance Research Letters, 23.03.2018.

Research output: Contribution to journalJournal articleResearchpeer-review

TY - JOUR

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

N1 - Epub ahead of print. Published online: 23. March 2018

PY - 2018/3/23

Y1 - 2018/3/23

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

JO - Finance Research Letters

T2 - Finance Research Letters

JF - Finance Research Letters

SN - 1544-6123

ER -