Semantic Analysis: Can MD&A Word Choice Increase Stock Price of American Publicly Traded Banks Disseminating Using Twitter?

• Daniel H. Boylan ^[1] ; Mathew Thomas ^[2] ; Evidence Matangi ^[4] ; Marni Brown ^[3]
  1. [1] Purdue University

     Purdue University

     Township of Wabash, Estados Unidos

     
  2. [2] Widener University

     Widener University

     City of Chester, Estados Unidos

     
  3. [3] University of North Georgia

     University of North Georgia

     Estados Unidos

     
  4. [4] Purdue University, West Lafayette, Zimbabwe

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• Localización: The International Journal of Digital Accounting Research, ISSN 1577-8517, Vol. 20, Nº. 26, 2020, págs. 45-73
• Idioma: inglés
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• Resumen

  • Social media has become a part of the International framework. Use has risen exponentially and organizations that have relied on traditional channels of communication are considering its use. Researchers studied the impact of semantics on organizations disseminating financial information using Twitter. This study sought to understand the impact of word strength in communicating with investors. This study included 34 American publicly traded banks over four quarters or a sample size of 136. Seventeen used Twitter while seventeen did not. The researchers analyzed the semantic content of these messages. Using a predictive model, researchers compared the cumulative abnormal returns associated with the announcement. Researchers concluded that using Twitter did not positively impact stock price. Researchers also found that banks using Twitter used more powerful words in communicating. This research advances understanding the role social media and semantics can play to disseminate financial information.