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Using Social Media Analytics: The Effect of President Trump’s Tweets On Companies’ Performance

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  • Ahmad H. Juma’h
  • Yazan Alnsour

    (University of Illinois Springfield, USA)

Abstract

Social media is becoming one of the main sources of unstructured data. Many financial analysts use Twitter to gather data and obtain meaningful insights. Recently, high-profile politicians like President Trump have been using Twitter to communicate with the public. The President’s Tweets are used as considered to be informative signals that may influence consumers and affect investors’ decisions in the stock market. The effect of these signals can be measured by coinciding changes in the stock market or changes in the share prices of certain companies targeted in the President’s Tweets. The Tweets used in this research include keywords that are related to finance and economics, public policy, political considerations, and targeted companies. Event study methodology is used to determine the relationship between Trump’s Tweets’ content and daily changes in major indexes and targeted companies’ excess returns. Although many of the recent discussions have indicated that Trump’s microblogging can affect the financial markets, the results, on average, show no significant effect of Trump’s Tweets on either market indexes nor on most of the targeted companies share prices.

Suggested Citation

  • Ahmad H. Juma’h & Yazan Alnsour, 2018. "Using Social Media Analytics: The Effect of President Trump’s Tweets On Companies’ Performance," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 17(1), pages 100-121, March.
    • Handle: RePEc:ami:journl:v:17:y:2018:i:1:p:100-121
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    Cited by:

    1. Heleen Brans & Bert Scholtens, 2020. "Under his thumb the effect of president Donald Trump’s Twitter messages on the US stock market," PLOS ONE, Public Library of Science, vol. 15(3), pages 1-11, March.
    2. Machus, Tobias & Mestel, Roland & Theissen, Erik, 2022. "Heroes, just for one day: The impact of Donald Trump’s tweets on stock prices," Journal of Behavioral and Experimental Finance, Elsevier, vol. 33(C).
    3. Zachlod, Cécile & Samuel, Olga & Ochsner, Andrea & Werthmüller, Sarah, 2022. "Analytics of social media data – State of characteristics and application," Journal of Business Research, Elsevier, vol. 144(C), pages 1064-1076.

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    More about this item

    Keywords

    Unstructured-data analysis; social media; microblogging effects; president’s tweets; companies performance;
    All these keywords.

    JEL classification:

    • G40 - Financial Economics - - Behavioral Finance - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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