The Information Content of Recommended Stocks by the Social Media

Abstract

Social media has developed rapidly in recent years. Many stock analysts utilize social media such as Facebook, Line and other community platforms to disseminate information to investors. This research explores the information content of recommended stock through social media by event study. The empirical result shows that analysts cannot provide significant abnormal returns to investors for listed company at stock exchange market. However, investors can get a little profit by day-trading within two days for listed company at over-the-counter market.