The tone of disseminated earnings news via twitter social media and the reaction of capital market

Amirinasab, Monir; Mehrazeen, Alireza

doi:10.22034/jse.2023.12018.2046

The tone of disseminated earnings news via twitter social media and the reaction of capital market

Document Type : Original Article

Authors

monir amirinasab ¹

Alireza Mehrazeen ²

¹ PhD in accounting, Department of Accounting Branch, Islamic Azad University, Neyshabur, Iran.

² Department of Accounting, Ne.C., Islamic Azad University, Neyshabur, Iran.

10.22034/jse.2023.12018.2046

Abstract

In the present study, has been investigated, the relationship between the tone of disseminated earnings news by companies via Twitter social media and the reaction of the capital market.
For this purpose, has been extracted, data from US S&P 500 companies, for 2016-2019 and has been analyzed. The results showed that there was significant relationship between the tone of disseminated earnings news on Twitter and the stock abnormal bid-ask spreads. Also, the results showed that there is a significant relationship between earnings tweets containing original and existing news and the stock abnormal bid-ask spread. Disseminated additional news through social media by companies, expands market participants' access to information and be used as a complementary source of awareness in capital markets.
Despite the role of social media as complementary awareness resources, this environment can be prone to strategic news dissemination by companies, and vigilance by users of this environment should be considered.

Keywords

social media

twitter

capital market

earnings news

content analysis

Subjects

Securities Exchange

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