Do Investors Care about Presidential Company-Speciﬁc Tweets?
38 Pages Posted: 15 Jun 2017 Last revised: 20 Dec 2017
Date Written: December 18, 2017
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: Suggested Citation