Sentiment stocks

Dong, Hang; Gil-Bazo, Javier

doi:10.1016/j.irfa.2020.101573

Cited by 32 publications

(13 citation statements)

References 37 publications

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“…They proposed that social media information, especially at the hourly level, drives social media users to incorrectly react in the stock market. An abundance of finance literature also claims this mechanism (Dong & Gil-Bazo, 2020;Renault, 2017). For example, Renault (2017) documented that the association between social media and stock returns is mainly driven by the sentiment of novice traders.…”

Section: The Role Of Social Media In Financial Marketsmentioning

confidence: 98%

How does social media sentiment impact mass media sentiment? A study of news in the financial markets

Ren

Dong

Padmanabhan

et al. 2021

Asso for Info Science & Tech

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Mass media sentiment of financial news significantly influences investment decisions of investors. Hence, studying how this sentiment emerges is important. In years past, this was straightforward, often dictated by journalists who cover financial news, but this has become more complex now. In this paper, we focus on how social media sentiment affects mass media sentiment. Using data from Sina Weibo and Sina Finance (around 60 million weibos and 6.2 million news articles), we show that social media does influence mass media sentiment emergence for financial news. The sentiment consistency between social media reaction and prior news articles amplifies the persistence of mass media sentiment over time. By contrast, we found limited evidence of social media reducing the persistence of mass media sentiment over time. The results have significant implications for understanding how 2 types of media, treated separately in the literature, may be connected.

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Section: The Role Of Social Media In Financial Marketsmentioning

confidence: 98%

How does social media sentiment impact mass media sentiment? A study of news in the financial markets

Ren

Dong

Padmanabhan

et al. 2021

Asso for Info Science & Tech

Self Cite

View full text Add to dashboard Cite

show abstract

“…However, the pre-IPO market price is not an available measure of FSIS that can be generalized to a panel of US public firms. In the Chinese stock market, Dong and Gil-Bazo (2020) employ the tone of Weibo post as the measure of FSIS, and Fu et al (2021) form a FSIS index based on price-to-earnings ratio, average turnover rate and buy-sell imbalance. We use overnight returns as our primary proxy for FSIS and show that at the firm level, investor sentiment is positively related to the value of cash holdings in a large panel sample of US firms.…”

Section: Introductionmentioning

confidence: 99%

“…Unlike firm‐level sentiment measures based on Europe's pre‐IPO markets or social media (e.g. Cornelli, Goldreich and Ljungqvist, 2006; Dong and Gil‐Bazo, 2020), our measure of FSIS has been available for most US public firms since 1992.…”

Section: Introductionmentioning

confidence: 99%

“…However, the pre‐IPO market price is not an available measure of FSIS that can be generalized to a panel of US public firms. In the Chinese stock market, Dong and Gil‐Bazo (2020) employ the tone of Weibo post as the measure of FSIS, and Fu et al. (2021) form a FSIS index based on price‐to‐earnings ratio, average turnover rate and buy–sell imbalance.…”

Section: Introductionmentioning

confidence: 99%

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How Does Firm‐Specific Investor Sentiment Affect the Value of Corporate Cash Holdings?

Guo

Yin

Zeng

2022

British J of Management

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We document a positive relation between firm‐specific investor sentiment (FSIS) and the value of cash. We also show that FSIS has a stronger positive effect on the value of cash than the value of other types of assets, suggesting that our finding is not a simple reflection of firm‐level overvaluation. Our finding is robust to alternative measures of change in cash, different cash regimes, FSIS measured by order imbalance, news sentiment and the tone of earnings conference call transcripts and controlling for market‐wide sentiment, institutional monitoring, corporate governance and endogeneity. Cross‐sectional analyses suggest that the positive relation between FSIS and the value of cash is stronger for firms with better future growth opportunities, larger investment, more innovation activities, higher information asymmetry and more liquid stocks. Overall, our paper sheds light on the important role of FSIS in corporate outcomes.

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“…According to the official survey conducted by the Shenzhen Stock Exchange (SZSE) in 2016, less than 30% of the investors make their investment decisions according to earnings announcements of publicly listed companies. Moreover, over 40% of investors buy and sell their stocks based on media news and market swings (Dong and Gil-Bazo, 2020). As a result, Chinese A-share stock market participants focus more on the market movement and pay less attention to changes in individual firm earnings.…”

Section: Introductionmentioning

confidence: 99%

Limited Attention and Post-Earnings Announcement Drift: Evidence From China’s Stock Market

Chen

Gao

Liu

2021

IJEFI

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This paper utilizes Chinese stock data to provide further evidence on the power of limited attention theory in explaining post-earnings announcement drift. As retail investors prevail in China and they are easily distracted by market swings, we should expect severe attention problems, resulting in larger underreaction to firm information and higher sensitivity to market movement, i.e., the so-called "market movement effect". After accounting for special arrangements such as preannouncements and earnings previews, we confirm a strong presence of this effect in Chinese stock market, given the "Friday effect" and "announcement concentration effect" being controlled for. Moreover, the effect is asymmetric in market up and down, and becomes more pronounced for small-cap and value stocks.

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Sentiment stocks

Cited by 32 publications

References 37 publications

How does social media sentiment impact mass media sentiment? A study of news in the financial markets

How does social media sentiment impact mass media sentiment? A study of news in the financial markets

How Does Firm‐Specific Investor Sentiment Affect the Value of Corporate Cash Holdings?

Limited Attention and Post-Earnings Announcement Drift: Evidence From China’s Stock Market

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