SOCIAL MEDIA, TRADING VOLUME, VOLATILITY AND STOCK PRICES

This study investigates the impact of social media events on the behavior of six mega-cap technology stocks. Analyzing both positive and negative events, we find that negative events correlate with higher VIX Betas and trading volumes, while positive events are linked to higher stock prices. These effects vary across individual stocks, and unexpected associations emerge, such as increased trading volume for certain positive events. Our findings offer insights into the intricate interplay between social media events and market dynamics, highlighting the nuanced influences on volatility, trading volume, and stock prices for specific stocks. This study contributes to our understanding of the complex relationship between social media and financial markets, emphasizing the importance of considering stock-specific dynamics in investment strategies

Trading on Cryptocurrency Markets: Analyzing the Behavior of Bitcoin Investors

Driven by innovative information technologies, the financial industry is facing a recent disruptive fintech revolution. One emerging technology within this field is cryptocurrency, aiming to change the future means of payment. In this paper, we study Bitcoin exchange trading and examine what factors influence the behavior of different cryptocurrency investor types. To answer this question, market bids are considered in form of investors\u27 offers and orders as a proxy for their trading behavior. First, an unsupervised clustering technique is applied in order to group different types of investors based on similarities in trading behavior. Second, a supervised classification mechanism is used on social media news to measure the sentiment influencing trading decisions. Among other indicators this bullishness is integrated in an autoregressive distributed lag (ARDL) model to identify the factors influencing the trading behavior of investor types. Besides large investors, foreign traders and speculators, cryptocurrency-specific market participants are characterized in the form of miners. With identifying indicators driving investors\u27 actions (i.e., macro-financial fundamentals, technical trading indicators, technological measures and market sentiment), this study contributes to recent research by explaining the trading behavior on cryptocurrency markets and its impact on exchange rates

Discovering public sentiment in social media for predicting stock movement of publicly listed companies

The popularity of many social media sites has prompted both academic and practical research on the possibility of mining social media data for the analysis of public sentiment. Studies have suggested that public emotions shown through Twitter could be well correlated with the Dow Jones Industrial Average. However, it remains unclear how public sentiment, as reflected on social media, can be used to predict stock price movement of a particular publicly-listed company. In this study, we attempt to fill this research void by proposing a technique, called SMeDA-SA, to mine Twitter data for sentiment analysis and then predict the stock movement of specific listed companies. For the purpose of experimentation, we collected 200 million tweets that mentioned one or more of 30 companies that were listed in NASDAQ or the New York Stock Exchange. SMeDA-SA performs its task by first extracting ambiguous textual messages from these tweets to create a list of words that reflects public sentiment. SMeDA-SA then made use of a data mining algorithm to expand the word list by adding emotional phrases so as to better classify sentiments in the tweets. With SMeDA-SA, we discover that the stock movement of many companies can be predicted rather accurately with an average accuracy over 70%. This paper describes how SMeDA-SA can be used to mine social media date for sentiments. It also presents the key implications of our study

Machine Learning-Based Analysis of the Association Between Online Texts and Stock Price Movements

The paper presents the result of experiments that were designed with the goal of revealing the association between texts published in online environments (Yahoo! Finance, Facebook, and Twitter) and changes in stock prices of the corresponding companies at a micro level. The association between lexicon detected sentiment and stock price movements was not confirmed. It was, however, possible to reveal and quantify such association with the application of machine learning-based classification. From the experiments it was obvious that the data preparation procedure had a substantial impact on the results. Thus, different stock price smoothing, lags between the release of documents and related stock price changes, five levels of a minimal stock price change, three different weighting schemes for structured document representation, and six classifiers were studied. It has been shown that at least part of the movement of stock prices is associated with the textual content if a proper combination of processing parameters is selected

Comunicación de la responsabilidad social corporativa (RSC) en redes sociales

El auge de la Responsabilidad Social Corporativa (RSC) de la mano del surgimiento y desarrollo de la web 2.0 han propiciado cambios en la comunicación contable de información no financiera dirigida a un amplio espectro de stakeholders, que han repercutido en el uso de diversas herramientas y aplicaciones como las redes sociales -creadas para favorecer y fortalecer las relaciones sociales, incrementar la interacción y buscar una participación activa del usuario a través de la co-creación de contenidos-(Fieseler and Fleck, 2013). Con ello, las dinámicas de accountability corporativa han sido trasladadas de los medios tradicionales hacia medios interactivos que podrían promover el stakeholder engagement y que permitirían una mayor visibilidad y acceso, con un mayor impacto (Unerman and Bennett, 2004; Baue and Murninghan, 2011; Capriotti, 2011). En este contexto, América Latina ha sido considerada como la región más activa en el uso de redes sociales en el mundo (Evans, 2017) y particularmente los países de la Alianza del Pacífico compuesta por Chile, Colombia, México y Perú, han promovido una agenda digital que busca desarrollar prácticas de innovación y competitividad a la par que han adaptado de una forma rápida y creciente varias iniciativas de divulgación de información para la sostenibilidad como las del Global Reporting Initiative y el Pacto Global(Alianza del Pacífico, 2012, 2018). Por tanto, el objetivo de esta tesis es analizar la comunicación de la RSC a través de dos redes sociales –Facebook y Twitter- en los países de la Alianza del Pacífico, evaluando los factores internos y externos que motivan la divulgación y comprendiendo sus potencialidades para la accountability y la participación de los stakeholders. Así, el primer capítulo de la tesis presenta el planteamiento general de la investigación, exponiendo la motivación y el contexto en el cual se desarrollan los estudios empíricos, los objetivos, el marco conceptual y el diseño metodológico. El segundo capítulo presenta un análisis de tres aspectos relacionados con la comunicación de la RSC a través de Facebook en compañías pertenecientes al índice MILATRC16. Tales aspectos son: los niveles de divulgación de la información, los niveles de interactividad que promueven las compañías de la muestra y la legitimidad que alcanzan los mensajes en esta red social. El tercer capítulo realiza un estudio empírico en el que se analiza la influencia de características corporativas y características observables del CEO (género, edad, tenure) en la divulgación de RSC en Twitter en un grupo de 93 compañías del ranking MERCO de RSC en países de la Alianza Pacífico para el año 2016; mientras que el cuarto capítulo desarrolla el análisis del impacto de las características psicológicas del CEO sobre el nivel de divulgación de RSC en redes sociales en 66 empresas incluidas en el ranking Merco de RSC en esta región para el periodo 2014-2016. Para el efecto, específicamente se analizó el narcisismo del CEO por ser una característica psicológica que implica la necesidad de exposición ante audiencias amplias. Los resultados de los estudios empíricos permiten concluir que pese al potencial de las redes sociales para fortalecer la accountability corporativa y el stakeholder engagement, los niveles de divulgación de RSC tanto en Facebook como en Twitter son bajos; así como los niveles de interactividad. Sin embargo se encuentra un alto nivel de legitimidad de la información de RSC por parte de los usuarios, quienes se muestran interesados en participar y comentar sobre este tipo de información. Asimismo, se observa que tanto las características corporativas, como las características personales del CEO influyen en el nivel de divulgación en ambas redes sociales. Referencias: Alianza del Pacífico (2012) Acuerdo Marco de la Alianza del Pacífico. Available at: https://alianzapacifico.net/download-category/acuerdo-marco-de-la-alianza-del-pacifico/ (Accessed: 7 August 2018). Alianza del Pacífico (2018) Grupos Técnicoss. Available at: https://alianzapacifico.net/grupo-tecnico-de-medio-ambiente/# (Accessed: 7 August 2018). Baue, B. and Murninghan, M. (2011) ‘The Accountability Web. Weaving Corporate Accountability and Interactive Technology’, The Journal of Corporate Citizenship, 41, pp. 27–49. Capriotti, P. (2011) ‘Communicating Corporate Social Responsibility through the Internet and Social Media’, in Ihlen, Ø., Bartlett, J. L., and May, S. (eds) The Handbook of Communication and Corporate Social Responsibility. Chichester, UK: Wiley-Blackwell, pp. 358–379. Evans, M. (2017) 3 Things You Need To Know About Latin American Digital Consumers, Forbes. Available at: https://www.forbes.com/sites/michelleevans1/2017/08/10/3-things-you-need-to-know-about-latin-american-digital-consumers/2/#6379015f226f (Accessed: 12 June 2018). Fieseler, C. and Fleck, M. (2013) ‘The Pursuit of Empowerment through Social Media: Structural Social Capital Dynamics in CSR-Blogging’, Journal of Business Ethics, 118(4), pp. 759–775. doi: 10.1007/s10551-013-1959-9. Unerman, J. and Bennett, M. (2004) ‘Increased stakeholder dialogue and the internet: towards greater corporate accountability or reinforcing capitalist hegemony?’, Accounting, Organizations and Society, 29, pp. 685–707. doi: 10.1016/j.aos.2003.10.009