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Do Investors Care about Presidential Company-Specific Tweets?

38 Pages Posted: 15 Jun 2017 Last revised: 20 Dec 2017

Qi Ge

Skidmore College - Department of Economics

Alexander Kurov

West Virginia University - College of Business & Economics

Marketa Wolfe

Skidmore College - Department of Economics

Date Written: December 18, 2017

Abstract

When the President of the United States tweets, do investors respond? We analyze the impact of tweets from President Trump's official Twitter accounts from November 9, 2016 to September 30, 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 on the next few trading days.

Keywords: Twitter, Company-Specific Tweets, President Trump, Stock Price, Trading Volume, Volatility, Investor Attention, Event Study

JEL Classification: G12, G14

Suggested Citation

Ge, Qi and Kurov, Alexander and Wolfe, Marketa, Do Investors Care about Presidential Company-Specific Tweets? (December 18, 2017). Available at SSRN: https://ssrn.com/abstract=2986350 or http://dx.doi.org/10.2139/ssrn.2986350

Qi Ge

Skidmore College - Department of Economics ( email )

815 North Broadway
Saratoga Springs, NY 12866-1632
United States

Alexander Kurov

West Virginia University - College of Business & Economics ( email )

P.O. Box 6025
Morgantown, WV 26506
United States

Marketa Wolfe (Contact Author)

Skidmore College - Department of Economics ( email )

815 N Broadway
Saratoga Springs, NY 12866
United States
+1-518-580-8374 (Phone)

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