Retail investors, social media, and their impact on the market

Project name in Czech
Retail investors, social media, and their impact on the market
Annotation in Czech
The proposed project investigates how retail investors’ behavior, influenced by social media, impacts the market. We will analyze the impact of retail investor attention on the firm’s cost of capital. 1) We will utilize technological advancements and identify less sophisticated investors, examining how their attention impacts the firms. 2) We will investigate the effects of the information gap resulting from a lack of reporting in traditional media. Using large microdata of real estate transactions, we will investigate how lack of coverage impacts an individual’s decision-making and whether social media can bridge the information gap and alleviate potential negative effects. 3) We will investigate the effects of bots on social media. Political research suggests that bots can cause division and polarization, and thus, their activity can increase investor disagreement in the stock market. 4) Current research on social media does not account for bots, which can significantly bias estimated sentiment and attention measures, thereby questioning the validity of past results.

R&D category
ZV - Basic research
OECD FORD - main branch
50206 - Finance
OECD FORD - secondary branch
50205 - Accounting
OECD FORD - another secondary branch
50204 - Business and management
CEP - equivalent branches <br>(according to the <a href="http://www.vyzkum.cz/storage/att/E6EF7938F0E854BAE520AC119FB22E8D/Prevodnik_oboru_Frascati.pdf">converter</a>)
AH - Economics<br>GA - Agricultural economics

Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data delivery code
CEP26-GA0-GA-R
Data delivery date
Apr 27, 2026

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