Journal ArticleDOI
Does Chatter Really Matter? Dynamics of User-Generated Content and Stock Performance
TLDR
In this article, the authors examined whether user-generated content (UGC) is related to stock market performance, which metric of UGC has the strongest relationship, and what the dynamics of the relationship are.Abstract:
This study examines whether user-generated content (UGC) is related to stock market performance, which metric of UGC has the strongest relationship, and what the dynamics of the relationship are. We aggregate UGC from multiple websites over a four-year period across 6 markets and 15 firms. We derive multiple metrics of UGC and use multivariate time-series models to assess the relationship between UGC and stock market performance.
Volume of chatter significantly leads abnormal returns by a few days (supported by Granger causality tests). Of all the metrics of UGC, volume of chatter has the strongest positive effect on abnormal returns and trading volume. The effect of negative and positive metrics of UGC on abnormal returns is asymmetric. Whereas negative UGC has a significant negative effect on abnormal returns with a short “wear-in” and long “wear-out,” positive UGC has no significant effect on these metrics. The volume of chatter and negative chatter have a significant positive effect on trading volume. Idiosyncratic risk increases significantly with negative information in UGC. Positive information does not have much influence on the risk of the firm. An increase in off-line advertising significantly increases the volume of chatter and decreases negative chatter. These results have important implications for managers and investors.read more
Citations
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Journal ArticleDOI
Word of mouth and interpersonal communication: A review and directions for future research
TL;DR: The authors argue that word of mouth is goal driven and serves five key functions (i.e., impression management, emotion regulation, information acquisition, social bonding, and persuasion) and suggest these motivations are predominantly self-serving and drive what people talk about even without their awareness.
Journal ArticleDOI
What We Know and Don't Know About Online Word-of-Mouth: A Review and Synthesis of the Literature
TL;DR: In this article, a multi-dimensional analysis of electronic word-of-mouth (eWOM) communication has been conducted based on a systematic review of 190 studies and the key issues in current and emerging literature and propose important questions for future research.
Journal ArticleDOI
Introduction to the Special Issue—Social Media and Business Transformation: A Framework for Research
TL;DR: A broad research agenda for understanding the relationships among social media, business, and society is outlined and it is hoped that the flexible framework outlined will help guide future research and develop a cumulative research tradition in this area.
Journal ArticleDOI
Digital marketing: A framework, review and research agenda
P.K. Kannan,Hongshuang Li +1 more
TL;DR: In this article, the authors present a framework for research in digital marketing that highlights the touchpoints in the marketing process as well as in marketing strategy process where digital technologies are having and will have a significant impact.
Journal ArticleDOI
Social Media Brand Community and Consumer Behavior: Quantifying the Relative Impact of User- and Marketer-Generated Content
TL;DR: This paper integrated qualitative user-marketer interaction content data from a fan page brand community on Facebook and consumer transactions data to assemble a unique data set at the individual consumer level and quantify the impact of community contents from consumers and marketers on consumers' apparel purchase expenditures.
References
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On Persistence in Mutual Fund Performance
TL;DR: Using a sample free of survivor bias, this paper showed that common factors in stock returns and investment expenses almost completely explain persistence in equity mutual fund's mean and risk-adjusted returns.