Paper Type

Short

Paper Number

1476

Description

In the contemporary financial landscape, the influence of Digital Interactive Media (DIM) on stock market volatility has emerged as a critical area of study. This research employs a comprehensive dataset (2709872 Q&A pairs) from three significant digital platforms, utilizing advanced sentiment analysis algorithms and autoregressive dynamic panel models to investigate the impact of DIM on stock performance. The study reveals that while investor sentiment expressed through questions does not significantly affect stock prices, the emotional tone and content of company responses have a notable impact. This finding aligns with theories from behavioral finance, information economics, and psychology, highlighting the asymmetric influence of corporate communication on market perceptions. Through rigorous endogeneity, robustness, the research confirms these insights, contributing significantly to our understanding of digital media's role in financial markets.

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Jul 2nd, 12:00 AM

Innovative Perspectives on Stock Dynamics: Unraveling Influence of Digital Interactive Platforms Through Advanced Sentiment Analysis and Dynamic Panel Model

In the contemporary financial landscape, the influence of Digital Interactive Media (DIM) on stock market volatility has emerged as a critical area of study. This research employs a comprehensive dataset (2709872 Q&A pairs) from three significant digital platforms, utilizing advanced sentiment analysis algorithms and autoregressive dynamic panel models to investigate the impact of DIM on stock performance. The study reveals that while investor sentiment expressed through questions does not significantly affect stock prices, the emotional tone and content of company responses have a notable impact. This finding aligns with theories from behavioral finance, information economics, and psychology, highlighting the asymmetric influence of corporate communication on market perceptions. Through rigorous endogeneity, robustness, the research confirms these insights, contributing significantly to our understanding of digital media's role in financial markets.

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