Related Experiment Video
Updated: Sep 8, 2025
08:24
The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies
Published on: August 25, 2023
799
Do Twitter sentiments really effective on energy stocks? Evidence from the intercompany dependency
Emrah Sitki Yilmaz1, Asli Ozpolat2, Mehmet Akif Destek3
1Department of Accounting and Tax Applications, Gaziantep University, Gaziantep, Turkey.
Summary
Social media sentiment from Twitter does not significantly affect energy stock returns or volatility. However, tweets positively influence company trading volumes in the energy sector.
Area of Science:
- Financial Markets
- Behavioral Finance
- Energy Economics
Background:
- Social media platforms increasingly influence financial markets.
- Understanding the impact of social media on the energy sector is crucial for investors and policymakers.
- Previous research has explored social media's effect on stock prices, but sector-specific analyses, particularly in energy, require further investigation.
Purpose of the Study:
- To investigate the influence of social media sentiment on the stock prices within the energy sector.
- To analyze the relationship between Twitter sentiment and key financial metrics such as returns, volatility, and trading volume of energy stocks.
- To determine if social media activities provide predictive insights into energy stock market movements.
Main Methods:
- The study utilized monthly data from June 2015 to May 2020.
- Independent variables included the S&P 500 index (SP), Volatility Index (VIX), trade-weighted USD index (USD), and Brent oil prices (OIL).
- Augmented Mean Group (AMG) was employed to construct three models analyzing Twitter sentiment's impact on returns, volatility, and trading volume.
Main Results:
- Twitter sentiment exhibited no statistically significant effect on the returns of energy stocks.
- Social media sentiment did not demonstrate a significant impact on the volatility of energy sector stock prices.
- A positive correlation was found between Twitter sentiment and the trading volume of energy companies, indicating increased activity.
Conclusions:
- While social media sentiment does not appear to be a leading indicator for energy stock returns or volatility, it does correlate with increased trading activity.
- The findings suggest that investors and analysts should be cautious about relying solely on Twitter sentiment for predicting stock price movements in the energy sector.
- Future research could explore other social media platforms or more granular sentiment analysis techniques to capture potential market impacts.
Related Concept Videos
01:17Energy and Power Signals
568
In an electrical system with a resistor, voltage and current signals facilitate the measurement of power and energy across the resistor. For a continuous-time signal, the total energy over a time interval is defined as the integral of the square of the signal's magnitude over that interval. Mathematically, this is expressed as:
568
02:06Social Exchange Theory
35.4K
We have discussed why we form relationships, what attracts us to others, and different types of love. But what determines whether we are satisfied with and stay in a relationship? One theory that provides an explanation is social exchange theory. According to social exchange theory, we act as naïve economists in keeping a tally of the ratio of costs and benefits of forming and maintaining a relationship with others (Rusbult & Van Lange, 2003).
35.4K
01:14Energy Diagrams - I
5.1K
The dynamics of a mechanical system can be easily understood by interpreting a potential energy diagram. Since energy is a scalar quantity, the interpretation of the dynamics of the system becomes even simpler.
Take the example of a skater on a parabolic ramp. The potential energy at different points along the ramp will be proportional to the height of the ramp, which varies quadratically with the horizontal position on the ramp. As the skater moves down the ramp from the highest position,...
Take the example of a skater on a parabolic ramp. The potential energy at different points along the ramp will be proportional to the height of the ramp, which varies quadratically with the horizontal position on the ramp. As the skater moves down the ramp from the highest position,...
5.1K
01:10Energy Diagrams - II
4.7K
Energy diagrams are important to understand the dynamics of a system. The topology of an energy diagram helps illustrate the equilibrium points of the system.
The point in the energy diagram at which the system’s potential energy is the lowest is known as the local minima. The system tends to stay in this position indefinitely unless acted upon by a net force. The slope of the potential energy diagram at the local minima is zero, indicating that zero net force is acting on the system. The...
The point in the energy diagram at which the system’s potential energy is the lowest is known as the local minima. The system tends to stay in this position indefinitely unless acted upon by a net force. The slope of the potential energy diagram at the local minima is zero, indicating that zero net force is acting on the system. The...
4.7K
00:58Energy
13.9K
The universe is composed of matter in different forms, and all forms of matter contain energy. The different forms of energy on Earth originate from the Sun—the ultimate energy source. For instance, plants capture light energy from the Sun, and through the process of photosynthesis, convert it into chemical energy. This stored energy from plants can be harnessed in many ways. For example, eating plant products as food provides energy for our body to function, and burning wood or...
13.9K
01:18Independent and Dependent Sources
1.5K
In electrical circuits, sources play a crucial role in providing power for the operation of the circuit. These sources can be broadly categorized into two types: independent and dependent.
Independent voltage or current sources supply a fixed amount of voltage or current, respectively, which is unaffected by other elements within the circuit. These are represented using specific symbols. Independent voltage sources are symbolized with polarities (+ and -), indicating the direction of the...
Independent voltage or current sources supply a fixed amount of voltage or current, respectively, which is unaffected by other elements within the circuit. These are represented using specific symbols. Independent voltage sources are symbolized with polarities (+ and -), indicating the direction of the...
1.5K