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Examining stock markets and societal mood using Internet memes

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  • Jung, Sang Hoon
  • Jeong, Yong Jin

Abstract

Using Internet memes collected from Reddit, we extract variables to represent societal mood and examine their relationships with various stock market index prices. Through this, we analyse the level of sentimentality information incorporated in stock markets. The results show that societal mood variables representing sentiment intensity and user engagement are most important and significant in explaining index prices. Large-cap U.S. indices show more prominent relationships with societal mood than small-cap international indices, with variabilities in sentimentality information incorporation in different timeframes. The results also show that common overall societal sentimentality information is present in both memes and index prices.

Suggested Citation

  • Jung, Sang Hoon & Jeong, Yong Jin, 2021. "Examining stock markets and societal mood using Internet memes," Journal of Behavioral and Experimental Finance, Elsevier, vol. 32(C).
    • Handle: RePEc:eee:beexfi:v:32:y:2021:i:c:s2214635021001192
    DOI: 10.1016/j.jbef.2021.100575
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