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The Rising Power Of The Individual Investor: How Social Media Sentiments And User Activity Impact Stock Price Volatility And Trading Volume, Nandini Jayaram
The Rising Power Of The Individual Investor: How Social Media Sentiments And User Activity Impact Stock Price Volatility And Trading Volume, Nandini Jayaram
CMC Senior Theses
This paper investigates the relationship between social media sentiments and user activity on the ability of online platforms like Robinhood, Reddit, and Twitter to drive volatility in stock returns and trading volume of shares. The research contributes to the existing literature by studying the potential power of social media communities to influence the stock market parameters. The dataset includes information for several stocks of daily Robinhood users, mentions in r/wallstreetbets, number of Twitter followers, as well as closing price and trading volume data. Using a fixed effects panel data model, the regressions yield statistically significant results that indicate higher WallStreetBets …