Superposition effect of online news on fintech platforms
Abstract
Purpose
The rise of the mobile Internet has accumulated much text information in various online financial forums. Such information often contains the emotional attitudes of investors toward financial technology (fintech) platforms, so extracting the sentimental tendency information has great practical value for the development of fintech platforms. Based on the investor sentiment theory, the paper aims to analyze the relevant social media data and test the influence path of online news evaluation on the stock price fluctuation of fintech platforms.
Design/methodology/approach
Taking Oriental Fortune as the research object, this paper selects multiple variables such as stock bar popularity, snowball popularity, news popularity and news sentiment scores collected by UQER and combines the sentiment scores of single daily news into a daily sentiment score. Based on the period from November 1, 2019 to March 31, 2020, during the emergence of the coronavirus disease 2019 (COVID-19) pandemic as the background, the authors conduct the Granger causality test based on the vector autoregressive (VAR) model and analyze the relevant evaluation of Oriental Fortune through the empirical model.
Findings
The authors' results show that different online evaluations impact the rise and fall of stock prices differently, while news popularity has the most significant impact. Besides, news sentiment scores on share price fluctuation have a relatively substantial influence. These findings indicate that the authoritative news evaluation can strongly guide investors to make relevant investment behavior operations in the information dissemination process, significantly affecting stock prices.
Originality/value
The research findings of this paper have good inspiration and reference values for investors and financial regulators.
Keywords
Acknowledgements
This research has been supported by the National Natural Science Foundation of China (NSFC 72171184: Grey Private Knowledge model of security and trusted BI on the federal Learning Perspective, and NSFC 71871172: Model of Risk knowledge acquisition and Platform governance in FinTech based on deep learning). The authors deeply appreciate the suggestions from fellow members of Xia’s project team and Research Center of Enterprise Decision Support, Key Research Institute of Humanities and Social Sciences in Universities of Hubei Province (DSS20230000).
Citation
Xia, H., Chen, S., Zhang, J.Z. and Liu, Y. (2023), "Superposition effect of online news on fintech platforms", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-10-2022-1525
Publisher
:Emerald Publishing Limited
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