Dottorato in "Transizione Digitale e Sostenibilità": le imprese e le Amministrazioni pubbliche nell'economia globalizzata – Dipartimento di Scienze dell'Economia dell'Università del Salento
Knowledge Sharing and Scientific Interaction
Titolo: Market Sentiment and bank performance: An empirical analysis through Elon Musk’s tweets
Abstract: Consumer’s financial behavior could be influenced by the sentiment of tweets posted by highly influential people, impacting banking activities and, consequently, bank performance. This study aims to examine the relationship between sentiment and bank performance by considering a sample of 225 U.S.-listed banks during the period 2017-2021. The analysis combines both machine learning and econometric approaches. The analysis uses RoBERTa (a pre-trained transformer model) to extract emotions from Elon Musk’s tweets and then apply the GMM model to assess the impact of sentiment on banks’ profitability measured as ROA and ROE. The findings suggest that the overall sentiment has a negative impact on ROA, with negative emotions-such as, anger and sadness-having a statistically significant negative impact on ROA, while positive emotions appear to be insignificant. Moreover, sentiment has no effect on ROE, but negative emotions negatively affect ROE. The findings survive geographical and political regimes. These results carry certain implications for banks, enabling more informed decision-making regarding risk management, loan approval processes, and customer engagement strategies. Additionally, policymakers should consider social media sentiment as a potential source of economic volatility and its implications for financial stability.
Relatore: Dott. Lorenzo Calò
Data: 01.07.25 ore 13
Location: Ecotekne, Building C, I piano, Aula 'Mario Signore'