Document Type

Article

Publication Date

2018

Keywords

Twitter, Company-Specific Tweets, President Trump, Stock Price, Trading Volume, Volatility, Investor Attention, Event Study

Abstract

When the President of the United States tweets, do investors respond? We analyze the impact of tweets from President Trump's official Twitter accounts from November 9, 2016 to July 31, 2017 that include the name of a publicly traded company. We find that these tweets move company stock prices and increase trading volume, volatility and institutional investor attention, with a stronger impact before the presidential inauguration. The initial impact of the presidential tweets on stock prices appears to dissipate over the next few trading days. Overall, the results show that investors pay attention to presidential company-specific statements even when such statements have no lasting effect on shareholder value.

Comments

Working paper.

Included in

Finance Commons

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