Predicting the future of investor sentiment with social media in stock exchange investments: A basic framework for the DAX performance index

© Springer-Verlag Berlin Heidelberg 2013. Recently much attention has been paid on initial public offerings of social media companies, such as Facebook or Linkedln and how their owners become millionaires. However, this paper does clearly not focus on the valuation of IPOs of social media companies!...

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Main Author: Lugmayr, Artur
Format: Book Chapter
Published: 2013
Online Access:http://hdl.handle.net/20.500.11937/58050
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author Lugmayr, Artur
author_facet Lugmayr, Artur
author_sort Lugmayr, Artur
building Curtin Institutional Repository
collection Online Access
description © Springer-Verlag Berlin Heidelberg 2013. Recently much attention has been paid on initial public offerings of social media companies, such as Facebook or Linkedln and how their owners become millionaires. However, this paper does clearly not focus on the valuation of IPOs of social media companies! Stock markets are sentiment driven—the herd-like behaviour of investors lead easily to overreactions and investment decisions based on emotions. Within the scope of this article the power of social media as a tool for sentiment analysis for stock exchange investments is investigated. With the emergence of behavioural economics and finance and socionomic theories of finance, also today’s social media will provide implications on stock exchange market sentiments and investment decisions. This paper provides a framework how social media can be utilized as a tool for the evaluation of stock exchange market sentiments and which impact they have on particular investment decisions. News and information are the keys for successful investments, and social media provide an additional source of decision making, investment planning, or allow the spreading of financial news even quicker than news tickers. Within the scope of this paper, a framework for the application of social media as a tool in stock exchange trading is presented. The paper examines the potentials of social media for the analysis of themed focused social media platforms, collective mood analysis, attitude of investors and traders, social media content analysis, and the actual stock exchange value.
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spelling curtin-20.500.11937-580502017-11-20T08:58:17Z Predicting the future of investor sentiment with social media in stock exchange investments: A basic framework for the DAX performance index Lugmayr, Artur © Springer-Verlag Berlin Heidelberg 2013. Recently much attention has been paid on initial public offerings of social media companies, such as Facebook or Linkedln and how their owners become millionaires. However, this paper does clearly not focus on the valuation of IPOs of social media companies! Stock markets are sentiment driven—the herd-like behaviour of investors lead easily to overreactions and investment decisions based on emotions. Within the scope of this article the power of social media as a tool for sentiment analysis for stock exchange investments is investigated. With the emergence of behavioural economics and finance and socionomic theories of finance, also today’s social media will provide implications on stock exchange market sentiments and investment decisions. This paper provides a framework how social media can be utilized as a tool for the evaluation of stock exchange market sentiments and which impact they have on particular investment decisions. News and information are the keys for successful investments, and social media provide an additional source of decision making, investment planning, or allow the spreading of financial news even quicker than news tickers. Within the scope of this paper, a framework for the application of social media as a tool in stock exchange trading is presented. The paper examines the potentials of social media for the analysis of themed focused social media platforms, collective mood analysis, attitude of investors and traders, social media content analysis, and the actual stock exchange value. 2013 Book Chapter http://hdl.handle.net/20.500.11937/58050 10.1007/978-3-642-28897-5_33 restricted
spellingShingle Lugmayr, Artur
Predicting the future of investor sentiment with social media in stock exchange investments: A basic framework for the DAX performance index
title Predicting the future of investor sentiment with social media in stock exchange investments: A basic framework for the DAX performance index
title_full Predicting the future of investor sentiment with social media in stock exchange investments: A basic framework for the DAX performance index
title_fullStr Predicting the future of investor sentiment with social media in stock exchange investments: A basic framework for the DAX performance index
title_full_unstemmed Predicting the future of investor sentiment with social media in stock exchange investments: A basic framework for the DAX performance index
title_short Predicting the future of investor sentiment with social media in stock exchange investments: A basic framework for the DAX performance index
title_sort predicting the future of investor sentiment with social media in stock exchange investments: a basic framework for the dax performance index
url http://hdl.handle.net/20.500.11937/58050