Journal of Accounting and Management Information Systems (JAMIS)

Using social media analytics: The effect of President Trump’s tweets on companies’ performance

Vol. 17, No. 1/2018 ,   p100..121

Ahmad H. Juma’h
Yazan Alnsour

Keywords:   Unstructured-data analysis, social media, microblogging effects, president’s tweets, companies performance

Abstract:   Social media is becoming one of the main sources of unstructured data. Many financial analysts use Twitter to gather data and obtain meaningful insights. Recently, high-profile politicians like President Trump have been using Twitter to communicate with the public. The President’s Tweets are considered to be informative signals that may influence consumers and affect investors’ decisions in the stock market. The effect of these signals can be measured by coinciding changes in the stock market or changes in the share prices of certain companies targeted in the President’s Tweets. The Tweets used in this research include keywords that are related to finance and economics, public policy, political considerations, and targeted companies. Event study methodology is used to determine the relationship between Trump’s Tweets’ content and daily changes in major indexes and targeted companies’ excess returns. Although many of the recent discussions have indicated that Trump’s microblogging can affect the financial markets, the results, on average, show no significant effect of Trump’s Tweets on either market indexes nor on most of the targeted companies share prices.