The Impact of East Money Stock Forum Discussions on Stock Price Volatility

DOI

10.2991/978-94-6463-811-0_133How to use a DOI?

Keywords

East Money Stock Forum; Stock returns; Investor sentiment; Behavioral finance; COVID-19 impact

Abstract

This study examines the influence of discussions on the East Money Stock Forum (referred to as Guba) on stock price volatility, with a particular focus on the predictive power of forum posts, comments, and research reports on future stock returns. By employing a linear regression model, the analysis demonstrates that the net number of buy recommendations significantly and positively affects short-term stock returns, whereas the volume of comments shows a negative correlation. Over longer holding periods, the impact of these factors diminishes, suggesting that investor sentiment plays a more pronounced role in the short run. Furthermore, the study reveals that the COVID-19 pandemic intensified the effect of investor sentiment on stock returns, as heightened market uncertainty and increased reliance on social media for investment decisions exacerbated price fluctuations. These findings are consistent with behavioral finance theories, which emphasize the role of psychological factors and collective sentiment in driving market dynamics, particularly during periods of crisis. The research contributes to the growing body of literature on the intersection of social media, investor behavior, and financial markets, offering insights for both market participants and policymakers seeking to understand and mitigate excessive volatility. The results underscore the importance of monitoring online investor sentiment as a potential indicator of short-term market movements.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Chenbo Xu
PY  - 2025
DA  - 2025/08/14
TI  - The Impact of East Money Stock Forum Discussions on Stock Price Volatility
BT  - Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025)
PB  - Atlantis Press
SP  - 1210
EP  - 1218
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-811-0_133
DO  - 10.2991/978-94-6463-811-0_133
ID  - Xu2025
ER  -