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Do Investors Care About Presidential Company‐Specific Tweets?

Author

Listed:
  • Qi Ge
  • Alexander Kurov
  • Marketa Halova Wolfe

Abstract

When the president of the United States tweets, do investors respond? We analyze the impact of tweets from President Donald J. Trump's official Twitter accounts from November 9, 2016 to December 31, 2017 that include names of publicly traded companies. We find that these tweets move company stock prices and increase trading volume, volatility, and institutional investor attention, with a stronger impact before the presidential inauguration. There is some evidence that the initial impact of the presidential tweets on stock prices is reversed in the next few trading days.

Suggested Citation

  • Qi Ge & Alexander Kurov & Marketa Halova Wolfe, 2019. "Do Investors Care About Presidential Company‐Specific Tweets?," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 42(2), pages 213-242, July.
    • Handle: RePEc:bla:jfnres:v:42:y:2019:i:2:p:213-242
    DOI: 10.1111/jfir.12177
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    Cited by:

    1. Rui Fan & Oleksandr Talavera & Vu Tran, 2020. "Social media, political uncertainty, and stock markets," Review of Quantitative Finance and Accounting, Springer, vol. 55(3), pages 1137-1153, October.
    2. Gu, Chen & Chen, Denghui & Stan, Raluca & Shen, Aizhong, 2022. "It is not just What you say, but How you say it: Why tonality matters in central bank communication," Journal of Empirical Finance, Elsevier, vol. 68(C), pages 216-231.
    3. Afanasyev, Dmitriy O. & Fedorova, Elena & Ledyaeva, Svetlana, 2021. "Strength of words: Donald Trump's tweets, sanctions and Russia's ruble," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 253-277.
    4. Marinč, Matej & Massoud, Nadia & Ichev, Riste & Valentinčič, Aljoša, 2021. "Presidential candidates linguistic tone: The impact on the financial markets," Economics Letters, Elsevier, vol. 204(C).
    5. Guo, Shijun & Jiao, Yang & Xu, Zhiwei, 2021. "Trump’s Effect on the Chinese Stock Market," Journal of Asian Economics, Elsevier, vol. 72(C).
    6. Ante, Lennart, 2023. "How Elon Musk's Twitter activity moves cryptocurrency markets," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    7. 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).
    8. Yusaku Nishimura & Xuyi Dong & Bianxia Sun, 2021. "Trump's tweets: Sentiment, stock market volatility, and jumps," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 44(3), pages 497-512, September.
    9. Almond, Douglas & Du, Xinming, 2020. "Later bedtimes predict President Trump’s performance," Economics Letters, Elsevier, vol. 197(C).
    10. Amir Fekrazad & Syed M. Harun & Naafey Sardar, 2022. "Social media sentiment and the stock market," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 46(2), pages 397-419, April.
    11. 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.
    12. Nishimura, Yusaku & Sun, Bianxia, 2021. "President’s Tweets, US-China economic conflict and stock market Volatility: Evidence from China and G5 countries," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).

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