Facebook Drives Behavior of Passive Households in Stock Markets

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

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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.
Original languageEnglish
JournalFinance Research Letters
Pages (from-to)208-213
Number of pages6
Publication statusPublished - Dec 2018


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

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