Narratives in Financial Markets

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Financial Markets".

Deadline for manuscript submissions: closed (1 September 2021) | Viewed by 4055

Special Issue Editor


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Guest Editor
School of Business and Management, Queen Mary University of London, Bethnal Green, London E1 4NS, UK
Interests: behavioural finance; fast and frugal reasoning; financial regulation

Special Issue Information

Dear Colleagues,

This Special Issue will look at the expanding role of narratives in finance, a process chronicled in Robert Shiller’s recent book entitled “Narrative Economics”. How can these methods be integrated into our standard, largely numerical/statistical, methods to form a coherent valuation framework? How do standard measures of market sentiment, such as Baker–Wurgler indices, relate to those obtained from textual analysis of tweets or conference calls? Do the natural language processing methods embedded in R/Python programming techniques capture the meaning and significance of narratives in financial markets that well? What other methods are viable, reasonable, and possibly fruitful to use in the study of narratives in finance?

Prof. Dr. William Forbes
Guest Editor

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Keywords

  • narrative economics
  • sentiment analysis
  • methods for textual analysis
  • integrating a textual analysis into a standard statistical one

Published Papers (1 paper)

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Research

41 pages, 930 KiB  
Article
Social Media’s Impact on the Global Mergers and Acquisitions Market
by Dulani Jayasuriya and Ben O’Neill
J. Risk Financial Manag. 2021, 14(4), 157; https://doi.org/10.3390/jrfm14040157 - 2 Apr 2021
Cited by 1 | Viewed by 3731
Abstract
This study analyses the impact of social media popularity on the global mergers and acquisitions (M&A) market using a sample of 66,905 M&A transactions across 50 countries for the sample period from 2011 to 2017. Social media influence on M&A transactions is tested [...] Read more.
This study analyses the impact of social media popularity on the global mergers and acquisitions (M&A) market using a sample of 66,905 M&A transactions across 50 countries for the sample period from 2011 to 2017. Social media influence on M&A transactions is tested using competing bids and proportion of cash paid in the transaction deal characteristics. We find that social media popularity has increased the probability of competing bids by 7.7% across countries and the proportion of cash paid in transactions decreased by 2.5% across countries. The results of additional analyses using the introduction of the internet are consistent with the conclusion that technologies that enhance the transmission of public information have an effect on the M&A variables tested. We test the robustness of our results using subsample analysis and placebo tests. This study is distinct from existing literature due to its globally diverse M&A dataset, unique social media and internet data, and cross-country approach to social media’s influence on financial markets. Full article
(This article belongs to the Special Issue Narratives in Financial Markets)
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