Proceedings of The 3rd International Conference on Applied Research in Business, Management and Economics
Digital Expression under Financial Risk
This paper dives into what financial factors provoke social media expression. The term expression, in this paper, is being defined as the act of sharing relevant information regarding a set topic. By estimating facets such as the correlation between risk and communication, we find social media expression about investments correlates to volatility in the financial markets. It is evident from decades of research in loss aversion and prospect theory that human reaction to price change triggers heuristics and biases (Kahneman and Tversky 1979). It has also been proven that social media heavily alters basic human behavior such as emotional expression in users (Kumar 2016). Financial decision making, political perception and other factors which are dependent on outside characteristics are altered on social media. With the prevalence of outside nudges, heuristics, and biases plaguing the digital age, it is essential to understand how social media behavior is affected by financial, ethical, and cultural factors. In essence, this study compares different financial measures to the amount of Tweets (measure of social media expression) regarding a set subject.
Keywords: Tweets, Behavioral Finance, Expression, Risk.