Presidential attack risk: The impact of trump's tweets on financial markets

Chen，Renee Rui1; Xiao，Xiao2; Chen，Kun3; Ren，Jifan4

2023

10.4018/JGIM.325505

Journal of Global Information Management   Impact Factor & Quartile

1062-7375

1533-7995

The prevalence of social media has inspired multiple researchers to investigate the value of information on various platforms. However, most studies focus on integrating individual views (the wisdom of the crowd), and few studies investigate just one person's effect. To close this gap, this article investigates the impact of Trump's tweets on stock markets. Based on intraday stock market data, this study uses an event study to test the immediate reaction of the stock markets in both the Chinese and U.S. markets. Next, with ordinary least squares (OLS) regression, this study testes the effect of tweets' content features on the returns and volatility of the Chinese and U.S. indices. The results show that Trump's tweets impacted the financial market, especially the returns of the U.S. stock market during the COVID-19 pandemic. With additional analyses based on industry indices and time frequencies, the researchers found that Trump's sentiment on Twitter affected the Chinese financial industry during the trade war and impacted the Chinese pharmaceutical industry during the pandemic.

COVID-19 Pandemic Event Study Stock Market Trade War Twitter

English

Others

2-s2.0-85168238482

Scopus

1.Shenzhen University,China
2.School of Business,Southern University of Science and Technology,China
3.Southern University of Science and Technology,China
4.Harbin Institute of Technology,Shenzhen,China

Chen，Renee Rui,Xiao，Xiao,Chen，Kun,et al. Presidential attack risk: The impact of trump's tweets on financial markets[J]. Journal of Global Information Management,2023,31(1).

Chen，Renee Rui,Xiao，Xiao,Chen，Kun,&Ren，Jifan.(2023).Presidential attack risk: The impact of trump's tweets on financial markets.Journal of Global Information Management,31(1).

Chen，Renee Rui,et al."Presidential attack risk: The impact of trump's tweets on financial markets".Journal of Global Information Management 31.1(2023).