Document Type

Article

Publication Date

9-2018

Abstract

Social media has reshaped business models, economies, politics, and culture around the world. In this paper, we identified social media stocks from various sectors by using a strict, academic definition and then studied their performance and return characteristics. Multivariate regression results demonstrate that being recognized as a social media firm yields extra return. The performance of social media stocks is not associated with macro-level sentiment, but rather with firm-level attention paid by potential investors. Causality tests indicate that the default risk premium and volatility have incremental power in explaining the performance of social media stocks.

Publisher's Statement

© 2018 Elsevier Inc. All rights reserved. Article deposited here in compliance with publisher policy. Publisher's version of record: https://doi.org/10.1016/j.iref.2018.08.009

Publication Title

International Review of Economics & Finance

Version

Postprint

Included in

Business Commons

COinS