Twitter as 'bully pulpit': Brazilian banking sector case. Issue 1 (2nd January 2021)

• Record Type: Journal Article
• Authors: Tommasetti, Roberto; Mothé Maia, Vinicius; da Silva Macedo, Marcelo Álvaro
• Is Part Of: Applied economics letters. Volume 28:Issue 1(2021)
• Page Start: 61
• Page End: 64
• Publication Date: 2021-01-02
• Subjects: News -- noise -- efficient market hypotheses -- stock return and volume -- twitter; G00 -- G14 -- G21; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2020.1730753
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: This paper investigates whether Brazilian President Bolsonaro's bank-related tweets are perceived by the market as genuine news and, thus, affecting the related shares' price or, at least, the negotiated volumes (noise case). No significant impact was detected, possibly due to the fact that (i) his tweets' content is more political than market related; (ii) he has been in charge for less than one year and, consequently, the market is still in a 'wait and see' position; (iii) the local banking sector is very concentrated, being 'politically resistant', even to presidential tweets.