Using Social Media to Identify the Effects of Congressional Viewpoints on Asset Prices

• 成果类型: Article
• 署名作者: Bianchi, Francesco; Gomez-Cram, Roberto; Kung, Howard
• 署名单位: Johns Hopkins University; National Bureau of Economic Research; Center for Economic & Policy Research (CEPR); University of London; London Business School; Centre for Economic Policy Research - UK
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhae001
• 发表日期: 2024
• 页码: 2244
• 关键词: High-frequency identification; POLITICAL CYCLES; cross-section; STOCK; Sentiment; uncertainty; language; MARKET

摘要

We use a high-frequency identification approach to document that individual politicians affect asset prices. We exploit the regular flow of viewpoints contained in Congress members' tweets. Supportive (critical) tweets increase (decrease) the stock prices of the targeted firm and the corresponding industry in minutes around the tweet. The bulk of the stock price effects is concentrated in the tweets revealing news about future legislative action. The effects are amplified around committee meeting days, especially when the tweet originates from committee members and influential politicians. Overall, we show that Congress members' social media accounts are an important source of political news.