Social media attention and retail investor behavior: Evidence from r/wallstreetbets

IF 7.5 1区经济学 Q1 BUSINESS, FINANCE

International Review of Financial Analysis Pub Date : 2024-11-01 DOI:10.1016/j.irfa.2024.103721

Sonja Warkulat, Matthias Pelster

引用次数: 0

Abstract

This paper studies the influence of Reddit social media attention on investor risk-taking and welfare using individual trading data from a large trading platform. We show that attention generated on the subreddit r/wallstreetbets (WSB) spurs uninformed trading, also in short positions. WSB attention increases overall risk levels as investors trade riskier stocks and allocate larger portfolio shares to new positions. WSB attention significantly reduces holding period returns (HPRs). Positions created when WSB attention is at its highest realize −8.5% HPRs, while the average HPR across all investments is positive. Investment decisions of retail investors are more likely to be based on emotional responses to angry and disgusted user contributions on Reddit rather than analyst investment advice.

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社交媒体关注度与散户投资者行为：来自 r/wallstreetbets 的证据

本文利用一个大型交易平台的个人交易数据，研究了红人社交媒体关注对投资者风险承担和福利的影响。我们的研究表明，子红地毯 r/wallstreetbets (WSB) 上产生的关注会刺激投资者在不知情的情况下进行交易，包括空仓交易。随着投资者交易风险较高的股票并将更大的投资组合份额分配给新头寸，WSB 关注会增加整体风险水平。WSB 关注会大大降低持有期回报（HPRs）。在 WSB 关注度最高时建立的头寸实现了-8.5%的 HPR，而所有投资的平均 HPR 均为正值。散户投资者的投资决策更可能是基于对 Reddit 上愤怒和厌恶的用户贡献的情绪反应，而不是分析师的投资建议。

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

International Review of Financial Analysis BUSINESS, FINANCE-

CiteScore

10.30

自引率

9.80%

发文量

366

期刊介绍： The International Review of Financial Analysis (IRFA) is an impartial refereed journal designed to serve as a platform for high-quality financial research. It welcomes a diverse range of financial research topics and maintains an unbiased selection process. While not limited to U.S.-centric subjects, IRFA, as its title suggests, is open to valuable research contributions from around the world.