Heroes, just for one day: The impact of Donald Trump's tweets on stock prices

Theissen, Erik ; Machus, Tobias ; Mestel, Roland

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DOI:	https://doi.org/10.1016/j.jbef.2021.100594
URL:	https://www.sciencedirect.com/science/article/pii/...
URN:	urn:nbn:de:bsz:180-madoc-621061
Document Type:	Article
Year of publication:	2022
The title of a journal, publication series:	Journal of Behavioral and Experimental Finance
Volume:	33
Issue number:	Article 100594
Page range:	1-11
Place of publication:	Amsterdam
Publishing house:	Elsevier
ISSN:	2214-6350
Publication language:	English
Institution:	Business School > ABWL u. Finanzierung (Theissen 2009-)
Pre-existing license:	Creative Commons Attribution 4.0 International (CC BY 4.0)
Subject:	330 Economics
Abstract:	We analyze the effect of Donald Trump’s tweets on individual stock returns. We use intraday (minute-by-minute) data in order to uncover causal effects of the tweets on prices and trading activity. We find that the tweets cause increased trading activity but do not have lasting effects on stock prices. We also find evidence of abnormal returns, increased trading volume and increased investor attention before the tweets. This finding is consistent with Donald Trump’s tweets not providing new information but rather being comments on events that happened, and already attracted investor attention, before the tweet.