Social media disagreement and financial markets: A comparison of stocks and Bitcoin
We examine whether disagreement in social media discussions related to financial markets affects subsequent volatility and abnormal trading volume. We also compare how traditional and digital asset markets differ by comparing stocks and Bitcoin. We show that social media disagreement is positively a...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2024-12-01
|
| Series: | Economics and Business Review |
| Subjects: | |
| Online Access: | https://doi.org/10.18559/ebr.2024.4.1683 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1841536596004831232 |
|---|---|
| author | Akarsu Sergen Yilmaz Neslihan |
| author_facet | Akarsu Sergen Yilmaz Neslihan |
| author_sort | Akarsu Sergen |
| collection | DOAJ |
| description | We examine whether disagreement in social media discussions related to financial markets affects subsequent volatility and abnormal trading volume. We also compare how traditional and digital asset markets differ by comparing stocks and Bitcoin. We show that social media disagreement is positively associated with future market volatility and abnormal trading volume in the stock market. The effect of disagreement is more pronounced at the individual stock level than at the index level. A higher level of social media disagreement also increases the probability of extremely negative stock market returns. In contrast, disagreement in Bitcoin-related social media weakly affects subsequent volatility but does not affect trading volume or extremely negative returns. Our findings also reveal that market activity impacts the disagreement in the stock market and Bitcoin communities differently. |
| format | Article |
| id | doaj-art-c9ea6cff7bd540b8a6f44de99296d97c |
| institution | Kabale University |
| issn | 2450-0097 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Economics and Business Review |
| spelling | doaj-art-c9ea6cff7bd540b8a6f44de99296d97c2025-01-14T14:22:32ZengSciendoEconomics and Business Review2450-00972024-12-0110418921310.18559/ebr.2024.4.1683Social media disagreement and financial markets: A comparison of stocks and BitcoinAkarsu Sergen0Yilmaz Neslihan1Boğaziçi University, Department of Management, Bebek, Istanbul, 34342, TürkiyeBoğaziçi University, Department of Management, Bebek, Istanbul, 34342, TürkiyeWe examine whether disagreement in social media discussions related to financial markets affects subsequent volatility and abnormal trading volume. We also compare how traditional and digital asset markets differ by comparing stocks and Bitcoin. We show that social media disagreement is positively associated with future market volatility and abnormal trading volume in the stock market. The effect of disagreement is more pronounced at the individual stock level than at the index level. A higher level of social media disagreement also increases the probability of extremely negative stock market returns. In contrast, disagreement in Bitcoin-related social media weakly affects subsequent volatility but does not affect trading volume or extremely negative returns. Our findings also reveal that market activity impacts the disagreement in the stock market and Bitcoin communities differently.https://doi.org/10.18559/ebr.2024.4.1683disagreementtrading volumevolatilitybitcoinredditg10g41d83 |
| spellingShingle | Akarsu Sergen Yilmaz Neslihan Social media disagreement and financial markets: A comparison of stocks and Bitcoin Economics and Business Review disagreement trading volume volatility bitcoin g10 g41 d83 |
| title | Social media disagreement and financial markets: A comparison of stocks and Bitcoin |
| title_full | Social media disagreement and financial markets: A comparison of stocks and Bitcoin |
| title_fullStr | Social media disagreement and financial markets: A comparison of stocks and Bitcoin |
| title_full_unstemmed | Social media disagreement and financial markets: A comparison of stocks and Bitcoin |
| title_short | Social media disagreement and financial markets: A comparison of stocks and Bitcoin |
| title_sort | social media disagreement and financial markets a comparison of stocks and bitcoin |
| topic | disagreement trading volume volatility bitcoin g10 g41 d83 |
| url | https://doi.org/10.18559/ebr.2024.4.1683 |
| work_keys_str_mv | AT akarsusergen socialmediadisagreementandfinancialmarketsacomparisonofstocksandbitcoin AT yilmazneslihan socialmediadisagreementandfinancialmarketsacomparisonofstocksandbitcoin |