Social informedness and investor sentiment in the GameStop short squeeze.

IF 7.1 3区管理学 Q1 BUSINESS

Electronic Markets Pub Date : 2023-01-01 Epub Date: 2023-05-23 DOI:10.1007/s12525-023-00632-9

Kwansoo Kim, Sang-Yong Tom Lee, Robert J Kauffman

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引用次数: 1

Abstract

We examine investor behavior on social media platforms related to the GameStop (GME) short squeeze in early 2021. Individual investors stimulated the stock market via Reddit social posts in the presence of institutional investors who bet against GME's success as short sellers. We analyzed r/WallStreetBets subreddit posts related to GME's trading patterns. We performed text-based sentiment analysis and compared the social informedness of posting users for GME trading on two social media platforms. The short squeeze occurred due to coordinated trading by individual investors, who discussed trading strategies on the platforms and drove collective social informedness-based trading behavior. Our findings suggest that the valence and number of submissions influenced GME's intraday transaction volumes and precursors for irrational trading behavior patterns to have emerged. We provide a theoretical interpretation of what occurred and call for tighter monitoring of social news platforms. We also encourage effort to create an in-depth understanding of the observed patterns and the linkages between them and the larger equity markets.

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GameStop空头挤压中的社会信息和投资者情绪。

我们研究了与2021年初GameStop（GME）做空有关的投资者在社交媒体平台上的行为。个人投资者在机构投资者的见证下，通过Reddit社交帖子刺激了股市，这些机构投资者押注GME作为卖空者的成功。我们分析了r/WallStreetBets与GME交易模式相关的reddit子帖子。我们进行了基于文本的情绪分析，并比较了在两个社交媒体平台上发布GME交易用户的社交信息。空头挤压的发生是由于个人投资者的协调交易，他们在平台上讨论交易策略，并推动基于社会信息的集体交易行为。我们的研究结果表明，提交的价格和数量影响了GME的盘中交易量，并预示着非理性交易行为模式的出现。我们对所发生的事情进行了理论解释，并呼吁加强对社交新闻平台的监控。我们还鼓励努力深入了解观察到的模式以及它们与更大的股票市场之间的联系。

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

Electronic Markets Multiple-

CiteScore

14.80

自引率

15.30%

发文量

期刊介绍： Electronic Markets (EM) stands as a premier academic journal providing a dynamic platform for research into various forms of networked business. Recognizing the pivotal role of information and communication technology (ICT), EM delves into how ICT transforms the interactions between organizations and customers across diverse domains such as social networks, electronic commerce, supply chain management, and customer relationship management. Electronic markets, in essence, encompass the realms of networked business where multiple suppliers and customers engage in economic transactions within single or multiple tiers of economic value chains. This broad concept encompasses various forms, including allocation platforms with dynamic price discovery mechanisms, fostering atomistic relationships. Notable examples originate from financial markets (e.g., CBOT, XETRA) and energy markets (e.g., EEX, ICE). Join us in exploring the multifaceted landscape of electronic markets and their transformative impact on business interactions and dynamics.

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