Facebook drives behavior of passive households in stock markets
Research output: Contribution to journal › Article › Scientific › peer-review
|Number of pages||11|
|Journal||Finance Research Letters|
|Publication status||Published - Dec 2018|
|Publication type||A1 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