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Working paper

Social media, news media and the stock market

Abstract:

We contrast the impact of traditional news media and social media coverage on stock market volatility and trading volume. We develop a theoretical model of asset pricing and information processing, which allows for both rational traders and a variety of commonly studied behavioral biases. The model yields several novel and testable predictions about the impact of news and social media on asset prices. We then test the model's theoretical predictions using a unique dataset which measures cover...

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Publication status:
Published

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Files:
  • (Version of record, 486.3KB)
Publisher:
University of Oxford Publisher's website
Series:
Department of Economics Discussion Paper Series
Publication date:
2016-10-12
Paper number:
Paper 805
Keywords:
Pubs id:
679506
Local pid:
pubs:679506
Deposit date:
2020-12-14

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