Does Partisanship Shape Investor Beliefs? Evidence from the COVID-19 Pandemic

Arbeitspapier

We use party-identifying language – like “Liberal Media” and “MAGA”– to identify Republican users on the investor social platform StockTwits. Using a difference-in-difference design, we find that the beliefs of partisan Republicans about equities remain relatively unfazed during the COVID-19 pandemic, while other users become considerably more pessimistic. In cross-sectional tests, we find Republicans become relatively more optimistic about stocks that suffered the most from COVID-19, but more pessimistic about Chinese stocks. Finally, stocks with the greatest partisan disagreement on StockTwits have significantly more trading in the broader market, which explains 20% of the increase in stock turnover during the pandemic.

Angaben zum Objekt

• Sprache: Englisch

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Asset Pricing; Trading Volume; Bond Interest Rates ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Capitalist Systems: Political Economy
• Thema: COVID-19 ; Partisan ; Stock market

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Cookson, J. Anthony ; Engelberg, Joseph ; Mullins, William
• Ereignis: Veröffentlichung
• (wer): ZBW – Leibniz Information Centre for Economics
• (wo): Kiel, Hamburg
• (wann): 2020

Weitere Informationen

• Handle: http://hdl.handle.net/10419/219453
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ