Cargando…

Emotions in Twitter communication and stock prices of firms: the impact of Covid-19 pandemic

In this paper, we explored two key aspects of organization theory—organizational communication in the face of crisis and the influence of emotions expressed in social media communication and their impact on stock prices of firms. We extracted emotional content from 189,303 tweets and collected finan...

Descripción completa

Detalles Bibliográficos
Autores principales: Dhar, Suparna, Bose, Indranil
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer India 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7842179/
http://dx.doi.org/10.1007/s40622-020-00264-4
_version_ 1783643960913166336
author Dhar, Suparna
Bose, Indranil
author_facet Dhar, Suparna
Bose, Indranil
author_sort Dhar, Suparna
collection PubMed
description In this paper, we explored two key aspects of organization theory—organizational communication in the face of crisis and the influence of emotions expressed in social media communication and their impact on stock prices of firms. We extracted emotional content from 189,303 tweets and collected financial data for six quarters for 105 companies listed on the New York Stock Exchange from the Fortune 1000 list of companies. We operationalized a set of metrics to measure emotion in organizational tweets. Our analysis showed that the operationalized metrics to measure emotion expressed in organizational tweets were significant predictors of stock prices of firms. Further analysis showed a moderation effect of the crisis on the association between emotion expressed in organizational tweets and stock prices in the presence of control variables. The study provides a detailed analysis of constituent positive (happiness) and negative (anger, fear, and sadness) emotions in organizational tweets and their association with stock prices of firms. Practitioners and regulators may use the analysis and the metrics to assess organizational communication and better leverage Twitter for crisis response. This paper showcases organizational crisis response of Twitter and its financial impact.
format Online
Article
Text
id pubmed-7842179
institution National Center for Biotechnology Information
language English
publishDate 2021
publisher Springer India
record_format MEDLINE/PubMed
spelling pubmed-78421792021-01-29 Emotions in Twitter communication and stock prices of firms: the impact of Covid-19 pandemic Dhar, Suparna Bose, Indranil Decision Research Article In this paper, we explored two key aspects of organization theory—organizational communication in the face of crisis and the influence of emotions expressed in social media communication and their impact on stock prices of firms. We extracted emotional content from 189,303 tweets and collected financial data for six quarters for 105 companies listed on the New York Stock Exchange from the Fortune 1000 list of companies. We operationalized a set of metrics to measure emotion in organizational tweets. Our analysis showed that the operationalized metrics to measure emotion expressed in organizational tweets were significant predictors of stock prices of firms. Further analysis showed a moderation effect of the crisis on the association between emotion expressed in organizational tweets and stock prices in the presence of control variables. The study provides a detailed analysis of constituent positive (happiness) and negative (anger, fear, and sadness) emotions in organizational tweets and their association with stock prices of firms. Practitioners and regulators may use the analysis and the metrics to assess organizational communication and better leverage Twitter for crisis response. This paper showcases organizational crisis response of Twitter and its financial impact. Springer India 2021-01-28 2020 /pmc/articles/PMC7842179/ http://dx.doi.org/10.1007/s40622-020-00264-4 Text en © Indian Institute of Management Calcutta 2021 This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic.
spellingShingle Research Article
Dhar, Suparna
Bose, Indranil
Emotions in Twitter communication and stock prices of firms: the impact of Covid-19 pandemic
title Emotions in Twitter communication and stock prices of firms: the impact of Covid-19 pandemic
title_full Emotions in Twitter communication and stock prices of firms: the impact of Covid-19 pandemic
title_fullStr Emotions in Twitter communication and stock prices of firms: the impact of Covid-19 pandemic
title_full_unstemmed Emotions in Twitter communication and stock prices of firms: the impact of Covid-19 pandemic
title_short Emotions in Twitter communication and stock prices of firms: the impact of Covid-19 pandemic
title_sort emotions in twitter communication and stock prices of firms: the impact of covid-19 pandemic
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7842179/
http://dx.doi.org/10.1007/s40622-020-00264-4
work_keys_str_mv AT dharsuparna emotionsintwittercommunicationandstockpricesoffirmstheimpactofcovid19pandemic
AT boseindranil emotionsintwittercommunicationandstockpricesoffirmstheimpactofcovid19pandemic