Do Investors Care about Presidential Company-Speciﬁc Tweets?

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: 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