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

Department of Digitalization

Research output: Contribution to journal › Journal article › Research › 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.

Original language	English
Journal	Finance Research Letters
Volume	27
Pages (from-to)	208-213
Number of pages	6
ISSN	1544-6123
DOIs	https://doi.org/10.1016/j.frl.2018.03.020
Publication status	Published - Dec 2018

Keywords

Investor behavior
Social media
Stock markets
Investor sophistication
Decision making

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

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Cite this

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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.",

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 K{\c e}stutis Baltakys and Juho Kanniainen and Ravi Vatrapu and Mukkamala, {Raghava Rao} and Abid Hussain",

year = "2018",

month = dec,

doi = "10.1016/j.frl.2018.03.020",

language = "English",

volume = "27",

pages = "208--213",

journal = "Finance Research Letters",

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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 -