Social Media, News Media and the Stock Market

Peiran Jiao*, Andre Veiga, Ansgar Walther

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review


We study the effect on stock volatility and turnover of coverage by traditional news media and social media. We find that coverage by traditional news media predicts decreases in subsequent volatility and turnover, but coverage by social media predicts increases in volatility and turnover. We show that these patters are consistent with a model of "echo chambers", where social networks repeat news, but some investors interpret repeated signals as genuinely new information. (C) 2020 Elsevier B.V. All rights reserved.

Original languageEnglish
Pages (from-to)63-90
Number of pages28
JournalJournal of Economic Behavior & Organization
Publication statusPublished - Aug 2020

JEL classifications

  • d83 - "Search; Learning; Information and Knowledge; Communication; Belief"
  • g02 - Behavioral Finance: Underlying Principles


  • asset prices
  • news media
  • social media


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