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Evaluating Impact of Social Media Posts by Executives on Stock Prices

Author

Listed:
  • Anubhav Sarkar
  • Swagata Chakraborty
  • Sohom Ghosh
  • Sudip Kumar Naskar

Abstract

Predicting stock market movements has always been of great interest to investors and an active area of research. Research has proven that popularity of products is highly influenced by what people talk about. Social media like Twitter, Reddit have become hotspots of such influences. This paper investigates the impact of social media posts on close price prediction of stocks using Twitter and Reddit posts. Our objective is to integrate sentiment of social media data with historical stock data and study its effect on closing prices using time series models. We carried out rigorous experiments and deep analysis using multiple deep learning based models on different datasets to study the influence of posts by executives and general people on the close price. Experimental results on multiple stocks (Apple and Tesla) and decentralised currencies (Bitcoin and Ethereum) consistently show improvements in prediction on including social media data and greater improvements on including executive posts.

Suggested Citation

  • Anubhav Sarkar & Swagata Chakraborty & Sohom Ghosh & Sudip Kumar Naskar, 2022. "Evaluating Impact of Social Media Posts by Executives on Stock Prices," Papers 2211.01287, arXiv.org, revised Dec 2022.
    • Handle: RePEc:arx:papers:2211.01287
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    References listed on IDEAS

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    1. Timm O. Sprenger & Andranik Tumasjan & Philipp G. Sandner & Isabell M. Welpe, 2014. "Tweets and Trades: the Information Content of Stock Microblogs," European Financial Management, European Financial Management Association, vol. 20(5), pages 926-957, November.
    2. Lian Fen Lee & Amy P. Hutton & Susan Shu, 2015. "The Role of Social Media in the Capital Market: Evidence from Consumer Product Recalls," Journal of Accounting Research, Wiley Blackwell, vol. 53(2), pages 367-404, May.
    3. W. Brooke Elliott & Stephanie M. Grant & Frank D. Hodge, 2018. "Negative News and Investor Trust: The Role of $Firm and #CEO Twitter Use," Journal of Accounting Research, Wiley Blackwell, vol. 56(5), pages 1483-1519, December.
    4. Ramit Sawhney & Shivam Agarwal & Vivek Mittal & Paolo Rosso & Vikram Nanda & Sudheer Chava, 2022. "Cryptocurrency Bubble Detection: A New Stock Market Dataset, Financial Task & Hyperbolic Models," Papers 2206.06320, arXiv.org.
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