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Crowdsourced Investors' Recommendations and Stock Returns Synchronicity

04 December 2020, 4:00 pm–5:30 pm

Stock graph on computer screen

A CCSEE seminar with Dr Junhong Yang (SOAS)

This event is free.

Event Information

Open to

All

Availability

Yes

Cost

Free

Organiser

CCSEE

Location

Zoom

In this online seminar, the speaker will investigate whether disagreement on StockTwits, a major online community of traders and investors, provides firm-specific information. A Q&A session will follow.

The paper abstract:

In this paper, we investigate whether disagreement on StockTwits provides firm-specific information. Using supervised machine learning approaches, we predict investors' recommendations and measure disagreement among investors on StockTwits. Our findings suggest that an increase in investors' disagreement results in a drop in return synchronicity. The negative impact of investors' disagreement on return synchronicity suggests a higher inflow of firm-specific information. Further empirical evidence suggests that the negative impact of disagreement on return synchronicity is more pronounced for firms with a less transparent information environment and higher salience on StockTwits. These results are robust to using a variety of different specifications and estimation methods.
 
Registration is free but essential via Zoom.

About the Speaker

Dr Junhong Yang

at SOAS

More about Dr Junhong Yang