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Facebook drives behavior of passive households in stock markets

Research output: Contribution to journalArticleScientificpeer-review


Original languageEnglish
Number of pages11
JournalFinance Research Letters
Publication statusPublished - Dec 2018
Publication typeA1 Journal article-refereed


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 also for nonprofit organizations. At the same time, it seems that more sophisticated investors—financial and insurance institutions—are behaving independently from Facebook activities.


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

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Field of science, Statistics Finland

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