Robinhood, Reddit, and the news: The impact of traditional and social media on retail investor trading

IF 2.1 2区经济学 Q2 BUSINESS, FINANCE

Journal of Financial Markets Pub Date : 2024-11-01 DOI:10.1016/j.finmar.2024.100929

Markus Münster , Felix Reichenbach , Martin Walther

引用次数: 0

Abstract

We study the impact of social media posts and news articles on retail trading on Robinhood by analyzing the net buying activity before and after a (social) media publication. Our findings indicate that both publication types lead to an increase of holders. However, both effects are short-lived, and the effect of social media posts on retail trading is significantly higher. Furthermore, investors buy stocks that are recommended on Reddit regardless of text sentiment. However, they act as contrarians by selling stocks with positive news coverage and vice versa. We thus find evidence for both attention- and information-driven trading behavior.

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Robinhood、Reddit 和新闻：传统媒体和社交媒体对散户投资者交易的影响

我们通过分析（社交）媒体发布前后的净购买活动，研究了社交媒体帖子和新闻文章对 Robinhood 上零售交易的影响。我们的研究结果表明，两种发布类型都会导致持有者的增加。然而，这两种效应都是短暂的，社交媒体文章对散户交易的影响明显更大。此外，无论文本情绪如何，投资者都会购买 Reddit 上推荐的股票。但是，他们会逆向操作，卖出正面新闻报道的股票，反之亦然。因此，我们发现了注意力和信息驱动交易行为的证据。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Financial Markets BUSINESS, FINANCE-

CiteScore

3.40

自引率

3.60%

发文量

期刊介绍： The Journal of Financial Markets publishes high quality original research on applied and theoretical issues related to securities trading and pricing. Area of coverage includes the analysis and design of trading mechanisms, optimal order placement strategies, the role of information in securities markets, financial intermediation as it relates to securities investments - for example, the structure of brokerage and mutual fund industries, and analyses of short and long run horizon price behaviour. The journal strives to maintain a balance between theoretical and empirical work, and aims to provide prompt and constructive reviews to paper submitters.