Abstract
Going public is a monumental step for many companies. Not only does it increase a company's legitimacy in the business community, but it also gives opportunities for them to harness significant amounts of investment capital. However, entrepreneurs and investors often face uncertainty due to the unpredictable nature of initial public offerings (IPOs). This study evaluated the impact of the amount and sentiment of Twitter activity on stock returns using data from domestic companies who went public from June 1, 2020 - May 31, 2021. Overall market behavior, company size, and community population demographics and social economic status of the companies' headquarters locations were controlled. The analyses showed that Twitter activity is associated with higher returns during relatively long-term time frames. The results are relevant for companies and potential IPO investors to predict and maximize their profits in the market. They also open opportunities for future research to investigate more in-depth regarding social factors in relation to IPOs.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
