Impact of Public Announcements on Stock Prices: the Example of Lithuanian Stock Market Considering Values of Stock Prices

Stankevičienė, Jurgita; Akelaitis, Simas

doi:10.7250/eb.2014.027

Cited by 1 publication

(2 citation statements)

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“…It can also be simplified by saying that an efficient market can be determined by two simple conditions: First, the intrinsic value of a share should be equal to its market price or at least following its same trend, which indicates that all of the past and present announced information are reflected in the price. And second, when all investors can equally and correctly assess all the market shares and as a result no abnormal returns can be earned by anyone (Fama, 1970;Fischel, 1978;Schweitzer, 1989;Dimson and Mussavian, 1998;Asamoah, 2010;Biràu, 2011;Jayakumar, Thomas and Ali, 2012;Stankevičienė and Akelaitis, 2014;Dragota and Oprea, 2014).Social media aids in achieving its definition by allowing firms to instantly announce its corporate events to all investors at the same time.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…The event study methodology may seem complicated in its application although it is very simple in concept. This method is one of the econometrics' branches and the most commonly used techniques in financial researches.It is also the most effective and commonly used method in testing how stock prices and returns' behavior respond to certain events announcements (Schweitzer, 1989;Dulwich, 2006;Beverley, 2008;Asamoah, 2010;Sharma, 2011;Stankevičienė and Akelaitis, 2014).…”

Section: Introductionmentioning

confidence: 99%

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What Twitter Can Tell Us About the Stock Market

Hazem

Mohamed

Ali

2019

Anduli

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The announcement of a certain event taking place may be important and impactful with regard to the stock market and share prices, even more than the effectiveness and significance of the event itself. The aim of this study is to analyze the effect of financial event announcements via social media, specifically Twitter, on share returns of stocks on the Financial Times Stock Exchange 100 Index. Our research questions were tested on a sample of 833 event observations retrieved from official Twitter accounts for two years (1 January 2014-16 February 2016). The test was concerned with tracking stock return behavior on the event day (day 0), the pre-event window and the post-event window using the event-study methodology. This study found that there is a significant relationship between share prices and the events announced via Twitter, the type of tweets, news categories and tweeting intensity of the company involved. Classifying based on the industry of the announcing company had no significant relationship to stock return behavior.

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Section: Theoretical Frameworkmentioning

confidence: 99%