Paper Type
short
Description
Brand buzz sentiment–the favorability of public communications about the brand–has become a major source to gauge brand reputation and predict investor returns. In this research, the authors build a prediction model of investor returns by empirically elaborating on its intricate relations with two novel sentiment measures by integrating brand reputation literature with brand buzz research. Accordingly, investor returns are conceptualized as a function of the favorability of buzz associated with the brand’s ability to deliver its outputs (brand ability buzz sentiment) and the favorability of buzz associated with the brand’s societal impact (brand responsibility buzz sentiment) along with their interaction, respectively. Deploying support vector machine learning and panel vector autoregression, preliminary evidence suggests that brand ability buzz sentiment but not brand responsibility buzz sentiment drives investor returns, yet their interaction inhibits investor returns. The proposed model outperforms extant prediction models of investor returns.
Recommended Citation
Fischer, Stefan; Weiger, Welf; and Hammerschmidt, Maik, "Same Same but Different? The Predictive Power of Association Types in Brand Buzz for Investor Returns" (2019). ICIS 2019 Proceedings. 22.
https://aisel.aisnet.org/icis2019/data_science/data_science/22
Same Same but Different? The Predictive Power of Association Types in Brand Buzz for Investor Returns
Brand buzz sentiment–the favorability of public communications about the brand–has become a major source to gauge brand reputation and predict investor returns. In this research, the authors build a prediction model of investor returns by empirically elaborating on its intricate relations with two novel sentiment measures by integrating brand reputation literature with brand buzz research. Accordingly, investor returns are conceptualized as a function of the favorability of buzz associated with the brand’s ability to deliver its outputs (brand ability buzz sentiment) and the favorability of buzz associated with the brand’s societal impact (brand responsibility buzz sentiment) along with their interaction, respectively. Deploying support vector machine learning and panel vector autoregression, preliminary evidence suggests that brand ability buzz sentiment but not brand responsibility buzz sentiment drives investor returns, yet their interaction inhibits investor returns. The proposed model outperforms extant prediction models of investor returns.