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Vocabulary Herfindahl Index (VocaHIn): Linguistic dominance and collective effervescence in WallStreetBets

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Listed:
  • Hayakawa, Ko
  • Otsubo, Yoichi
  • Poon, Ser-huang
  • Wei, Siliang

Abstract

Our analysis of over 150,000 WallStreetBets comments reveals dominant phrases when members of the community experience collective excitement and solidarity (Collective Effervescence). Using the novel Vocabulary Herfindahl Index (VocaHIn), we find that stock returns volatility increases after CE, and vice versa.

Suggested Citation

  • Hayakawa, Ko & Otsubo, Yoichi & Poon, Ser-huang & Wei, Siliang, 2024. "Vocabulary Herfindahl Index (VocaHIn): Linguistic dominance and collective effervescence in WallStreetBets," Economics Letters, Elsevier, vol. 244(C).
    • Handle: RePEc:eee:ecolet:v:244:y:2024:i:c:s0165176524005111
    DOI: 10.1016/j.econlet.2024.112027
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    References listed on IDEAS

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    1. Ekkehart Boehmer & Charles M. Jones & Xiaoyan Zhang & Xinran Zhang, 2021. "Tracking Retail Investor Activity," Journal of Finance, American Finance Association, vol. 76(5), pages 2249-2305, October.
    2. Wu, Yaqi & Liu, Long & Shen, Si, 2024. "Did subsidiary's participation in paycheck protection program affect public parent company? Evidence from short selling," Economics Letters, Elsevier, vol. 241(C).
    3. Pedersen, Lasse Heje, 2022. "Game on: Social networks and markets," Journal of Financial Economics, Elsevier, vol. 146(3), pages 1097-1119.
    4. Suwan (Cheng) Long & Brian Lucey & Ying Xie & Larisa Yarovaya, 2023. "“I just like the stock”: The role of Reddit sentiment in the GameStop share rally," The Financial Review, Eastern Finance Association, vol. 58(1), pages 19-37, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Vocabulary Herfindahl Index (VocaHIn); Collective effervescence; Retail investors; Meme stocks;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets

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