Abstract
Twitter's massive data has been intensively explored in the stock market research in recent years as it allows researchers to relate investor sentiment and investor attention to stock performance. However, narrowing down to celebrity-like CEOs, followed by millions, allows more insight to Twitter's usefulness when these CEOs tweet about their company or its products. This study focuses on the effects of such company-oriented tweets on CEOs' companies' stock performance and trading volume. More than 27,000 account-specific tweets are retrieved for 8 CEOs spanning to around 12 years. Event study analysis is performed for stock returns and trading volume change, as it is the most appropriate method used by researchers in similar studies. In the event of an aforementioned tweet, higher stock return volatility is observed in comparison to average volatility. Statistical tests reveal that stock returns and volumes are relatively higher for companies the next day of the said tweet, depicting a relationship between CEO's tweet content and stock performance of companies.
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Data availability
For this study, Twitter data was acquired from Twitter.com and stock market data was acquired from Yahoo! Both are available on the internet, however, data sets generated during this study may be requested from the corresponding author on reasonable request.
Notes
The software counts the words corresponding to the category to which they belong (or do not belong, or to which they belong to simultaneously) using dictionary terms.
“In technical analysis, volume measures the number of a stock’s shares that are traded on a stock exchange in a day or a period of time,” Yahoo! Finance (Kristopher 2014)
The one-day discrepancy is because the tweet may have been posted after the market was closed.
It does not start from August 17, 2016, the date of stock market data being available for Dell Technologies, because Michael Dell posted his first tweet retrieved for this study since Dell Technologies became publicly traded again.
Application Programming Interface
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Acknowledgments
I would like to thank Prof. Tomasz Jewartowski, Prof. Tadeusz Kowalski. Dr. Jacek Wallusch, and Dr. Michal Taraszewski, for constant guidance, inspiration and ideas. I would also like to thank the esteemed organizers, participants, chairs, and discussants of the 37th Eurasia Business and Economics Society (EBES) conference held in Berlin in 2021, where I had the honor of presenting this study. My gratitude goes to Mehmet Huseyin Bilgin (Istanbul Medeniyet University, and EBES, Turkey), Manuela Zipperling (FOM University of Applied Sciences in Berlin, Germany), Azita Berar Awad (Global Labor Organization, Switzerland), Hasan Fehmi Baklaci (Chair, Behavioral Finance, EBES 37), Adam Zaremba (Montpellier Business School, France), and all others.
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Ali Qureshi, A. The power of social media: effects of CEO tweets on stock performance. Eurasian Bus Rev (2024). https://doi.org/10.1007/s40821-024-00251-0
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DOI: https://doi.org/10.1007/s40821-024-00251-0