Do Investors Care about Presidential Company-Specific Tweets?

47 Pages Posted: 15 Jun 2017 Last revised: 30 Aug 2018

See all articles by Qi Ge

Qi Ge

Vassar College - Department of Economics

Alexander Kurov

West Virginia University - College of Business & Economics

Marketa Wolfe

Skidmore College - Department of Economics

Date Written: August 8, 2018

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 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 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? (August 8, 2018). Journal of Financial Research, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2986350 or http://dx.doi.org/10.2139/ssrn.2986350

Qi Ge

Vassar College - Department of Economics ( email )

124 Raymond Avenue
Poughkeepsie, NY 12604
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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