Influence of Twitter activity on the stock price of soccer clubs
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ORIGINAL ARTICLE
Influence of Twitter activity on the stock price of soccer clubs Attila Sóti1,4 · Alessandro Ancarani2 · József Stéger3 · Gábor Vattay3 Received: 19 March 2020 / Revised: 24 August 2020 / Accepted: 27 August 2020 © Springer-Verlag GmbH Austria, part of Springer Nature 2020
Abstract The interrelation between the fluctuations of stock prices of football clubs and the social media activity of their fans is of major economic interest. The results in this research provide measurable support for the suggestion that financial market activities and the number of tweets are linked in the case of big football clubs. The novelty of the research is to show which daily ratio of tweet counts and their mood can predict the stock market. Based on these findings, sport managers could use social media strategically to build better relationships with consumers and stakeholders. Keywords Twitter · Social media · Football · Stock market
1 Introduction Research has investigated daily fluctuations of stock prices and found that they are influenced by the emotional state of the trading individuals (Vivek et al. 2012). In particular, the emotional state can be affected by economic trends and major political events but according to several studies also by sports events, even if with a smaller impact (Ashton et al. 2003). Among these events are the main football games (FIFA World Cup, UEFA Champions League, major matches of South American and European football leagues) that attract millions of people around the world (Yang et al. 2016). Nowadays, football fanatics are following their favourite clubs much closer than ever before thanks to the availability of many communication channels (Nielsen et al. 2019; Electronic supplementary material The online version of this article (https://doi.org/10.1007/s13278-020-00691-2) contains supplementary material, which is available to authorized users. * Attila Sóti [email protected] 1
Doctoral School of Regional‑ and Economic Sciences, Széchenyi István University, Egyetem Tér 1, Győr 9026, Hungary
2
DICAR, Università di Catania, Viale Doria 6, Catania, Italy
3
Department of Physics of Complex Systems, Eötvős Loránd University, Pázmány Péter sétány 1/A, Budapest 1117, Hungary
4
Szent Gellért, Street 44, Székesfehérvár 8000, Hungary
Sanderson 2011; Scholtens and Peenstra 2010). These channels are not limited any more to the one-way distribution of messages and images and include social media that allow two-way online interactions (Hromic and Hayes 2019), in which thoughts and opinions can be disseminated and accessed from all over the world (Dellarocas 2003; Sóti et al. 2018). In this light, the emergence of social media has profoundly impacted the delivery and consumption of sports events (Filo et al. 2015; Park et al. 2014). Previous studies have shown that victory or defeat of a sports team affects the stock market (Renneboog and Vanbrabant 2000; Vicentini and Graziano 2016); however, to the best of our knowledge, no study has proposed a method
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