Using Social Media Analytics: The Effect of President Trump's Tweets on Companies' Performance

Juma’h, Ahmad H., and Yazan Alnsour. "Using Social Media Analytics: The Effect of President Trump’s Tweets On Companies’ Performance." Journal of Accounting and Management Information Systems 17.1 (2018): 100-121.

22 Pages Posted: 7 May 2018 Last revised: 13 Jul 2018

See all articles by Ahmad Juma'h

Ahmad Juma'h

University of Illinois at Springfield

Yazan Alnsour

University of Illinois at Springfield

Date Written: January 1, 2018

Abstract

Social media is becoming one of the main sources of unstructured data. Many financial analysts use Twitter to gather data and obtain meaningful insights. Recently, high-profile politicians like President Trump have been using Twitter to communicate with the public. The President’s Tweets are considered to be informative signals that may influence consumers and affect investors’ decisions in the stock market. The effect of these signals can be measured by coinciding changes in the stock market or changes in the share prices of certain companies targeted in the President’s Tweets. The Tweets used in this research include keywords that are related to finance and economics, public policy, political considerations, and targeted companies. Event study methodology is used to determine the relationship between Trump’s Tweets’ content and daily changes in major indexes and targeted companies’ excess returns. Although many of the recent discussions have indicated that Trump’s microblogging can affect the financial markets, the results, on average, show no significant effect of Trump’s Tweets on either market indexes nor on most of the targeted companies share prices.

Keywords: Unstructured-data analysis, social media, microblogging effects, president’s tweets, companies performance

JEL Classification: G40, D80

Suggested Citation

Juma'h, Ahmad and Alnsour, Yazan, Using Social Media Analytics: The Effect of President Trump's Tweets on Companies' Performance (January 1, 2018). Juma’h, Ahmad H., and Yazan Alnsour. "Using Social Media Analytics: The Effect of President Trump’s Tweets On Companies’ Performance." Journal of Accounting and Management Information Systems 17.1 (2018): 100-121.. Available at SSRN: https://ssrn.com/abstract=3165428

Ahmad Juma'h (Contact Author)

University of Illinois at Springfield ( email )

Springfiled, IL 62703
United States

Yazan Alnsour

University of Illinois at Springfield ( email )

Springfiled, IL 62703
United States

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