Does Social Network Sentiment Influence S&P 500 Environmental & Socially Responsible Index?

The influence of social network sentiment on stock market indices and companies has been proven in several studies. However, the influence of social network sentiment on sustainability indices and sustainable companies has not been analyzed so far. Therefore, this study analyzed the influence of soc...

Full description

Saved in:
Bibliographic Details
Published in:Sustainability 2019-01, Vol.11 (2), p.320
Main Authors: López-Cabarcos, M., Pérez-Pico, Ada, López-Pérez, M.
Format: Article
Language:English
Subjects:
Autoregressive models
Corporate profiles
Information technology
Social networks
Social organization
Social responsibility
Stock exchanges
Sustainability
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The influence of social network sentiment on stock market indices and companies has been proven in several studies. However, the influence of social network sentiment on sustainability indices and sustainable companies has not been analyzed so far. Therefore, this study analyzed the influence of social network sentiment on sustainability indices (S&P 500 Environmental & Socially Responsible Index) and focused on variations of this influence on sustainable and non-sustainable companies, namely, in companies included in the Information Technology sector. To this end, two methodologies were used: GARCH (1,1) models and logit-probit models. The results showed that social network sentiment influences S&P 500 Environmental & Socially Responsible Index’s volatility; this influence was greater than the influence of social network sentiment when considering the S&P 500 Index. Additionally, the results showed that social network sentiment influences sustainable companies’ returns but had no effect on unsustainable companies’ returns. These results highlighted the importance of managing the companies’ profiles in social networks and their corporate image in general, because investors will consider these aspects to design their investment strategies.
ISSN:2071-1050
2071-1050
DOI:10.3390/su11020320