Disseminating Information on Twitter: Evidence from Investment Advisers

86 Pages Posted: 11 Oct 2023

Date Written: September 17, 2023


I show that investment advisers disseminate valuable stock information on their Twitter accounts. A one standard deviation increase in the sentiment of their tweets predicts a 12 bps increase in abnormal returns over the next week. This informativeness is not a result of pump-and-dump strategies or ex-post window-dressing. Advisers' tweets disseminate and interpret public news, especially analyst revisions and earnings announcements. Furthermore, they identify which recent trends in stock prices are fundamentally justified. Advisers offering financial planning services post more informative tweets. My results highlight the value of Twitter for connecting advisers and investors.

Keywords: Investment Advisers, Twitter, Information

JEL Classification: G11, G12, G14,

Suggested Citation

Kazempour, Seyed Mohammad, Disseminating Information on Twitter: Evidence from Investment Advisers (September 17, 2023). Available at SSRN: https://ssrn.com/abstract=4574229 or http://dx.doi.org/10.2139/ssrn.4574229

Seyed Mohammad Kazempour (Contact Author)

Louisiana State University ( email )

Baton Rouge, LA 70803-6308
United States

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