Research articles for the 2020-08-22

Impact of Tweets’ Sentiment Upon Stock Prices of Sport Companies: Can Fans Influence the Share Price of Their Preferred Sport Brand?
Derouiche, Karim,Frunza, Marius
This article aims to study the link between Twitter announces and stock prices of sport companies. Information extraction based on Natural Language Processing (NLP) allows to assess quickly and in a structured manner data from news, tweets, etc. Sentiment analysis provides an additional feature by categorizing the data in various classes (positive or negative sentiments, bullish or bearish market views etc...). In many instances, news, announces, social media content affects the evolution of stock prices. The research focuses on companies in the sport industry due to their popularity and the consistent number of followers on social networks, which provide a sound basis of analysis. The methodology encompasses the causality of tweets on stock price and the event study related to a significant event. The results analyze a sample of 18 listed companies in the sport industry.

Why is Stock Market Concentration Bad for the Economy?
Bae, Kee-Hong,Bailey, Warren,Kang, Jisok
The stock market should fund promising new firms, thereby breeding competition, innovation, and economic growth. However, using three decades of data from 47 countries, we show that concentrated stock markets dominated by a small number of very successful firms are associated with less efficient capital allocation, sluggish IPO and innovation activity, and slower economic growth. These findings are robust to alternative sample periods, econometric specifications, and competing explanatory variables. Our evidence is consistent with the paradox that the capital market of a competitive economy can impede the continuing competitiveness of that economy.