Do negative events really have deteriorating effects on stock performance? A comparative study on Tesla (US) and Nio (China)
Purpose Both investors and the stock markets are believed to behave in a perfectly rational manner, where investors focus on utility maximization and are not subjected to cognitive biases or any information processing errors. However, it has been discovered that the sentiment of the so...
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| Định dạng: | Bài viết |
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University of Economics Ho Chi Minh City
2023
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| Truy cập trực tuyến: | https://www.emerald.com/insight/content/doi/10.1108/JABES-07-2021-0106/full/html http://scholar.dlu.edu.vn/thuvienso/handle/DLU123456789/115464 |
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oai:scholar.dlu.edu.vn:DLU123456789-1154642023-03-08T03:56:18Z Do negative events really have deteriorating effects on stock performance? A comparative study on Tesla (US) and Nio (China) Lim, Yi Xuan Tan, Consilz Purpose Both investors and the stock markets are believed to behave in a perfectly rational manner, where investors focus on utility maximization and are not subjected to cognitive biases or any information processing errors. However, it has been discovered that the sentiment of the social mood has a significant impact on the stock market. This study aims to analyze how did the protest event of Tesla happened in April 2021 have a significant effect on the company's stock performance as well as its competitors, Nio, under the competitive effect. Design/methodology/approach The research is based on time series data collected from Tesla and Nio by employing 10 days, 15 days and 20 days anticipation and adjustment period for the event study. This study employed a text sentiment analysis to identify the polarity of the sentiment of the protest event using the Microsoft Azure machine learning tool which utilizes MPQA subjective lexicon. Findings The findings provide further evidence to show that a company-specific negative event has deteriorating effects on its stock performance, while having an opposite effect on its competitors. Research limitations/implications The paper argues that negative sentiments through social media word of mouth (SWOM) affect the stock market not just in the short run but potentially in the longer run. Such negative sentiments might create a snowball effect which causes the market to further scrutinize a company's operations and possibly lose confidence in the company. Originality/value This study explores how the Tesla's protest event at Shanghai Auto Show 2021 has a significant impact on Tesla's stock performance and prolonged negative impact although Tesla implemented immediate remedial actions. The remedial actions were not accepted positively and induced a wave of negative news which had a more persistent effect. 2023-03-08T03:56:18Z 2023-03-08T03:56:18Z 2022 Article 2515-964X https://www.emerald.com/insight/content/doi/10.1108/JABES-07-2021-0106/full/html http://scholar.dlu.edu.vn/thuvienso/handle/DLU123456789/115464 10.1108/JABES-07-2021-0106 en Journal of Asian Business and Economic Studies, Volume 29, Issue 2; p. 105-119 application/pdf University of Economics Ho Chi Minh City |
| institution |
Thư viện Trường Đại học Đà Lạt |
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Thư viện số |
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English |
| description |
Purpose Both investors and the stock markets are believed to behave in a perfectly rational manner, where investors focus on utility maximization and are not subjected to cognitive biases or any information processing errors. However, it has been discovered that the sentiment of the social mood has a significant impact on the stock market. This study aims to analyze how did the protest event of Tesla happened in April 2021 have a significant effect on the company's stock performance as well as its competitors, Nio, under the competitive effect. Design/methodology/approach The research is based on time series data collected from Tesla and Nio by employing 10 days, 15 days and 20 days anticipation and adjustment period for the event study. This study employed a text sentiment analysis to identify the polarity of the sentiment of the protest event using the Microsoft Azure machine learning tool which utilizes MPQA subjective lexicon. Findings The findings provide further evidence to show that a company-specific negative event has deteriorating effects on its stock performance, while having an opposite effect on its competitors. Research limitations/implications The paper argues that negative sentiments through social media word of mouth (SWOM) affect the stock market not just in the short run but potentially in the longer run. Such negative sentiments might create a snowball effect which causes the market to further scrutinize a company's operations and possibly lose confidence in the company. Originality/value This study explores how the Tesla's protest event at Shanghai Auto Show 2021 has a significant impact on Tesla's stock performance and prolonged negative impact although Tesla implemented immediate remedial actions. The remedial actions were not accepted positively and induced a wave of negative news which had a more persistent effect. |
| format |
Article |
| author |
Lim, Yi Xuan Tan, Consilz |
| spellingShingle |
Lim, Yi Xuan Tan, Consilz Do negative events really have deteriorating effects on stock performance? A comparative study on Tesla (US) and Nio (China) |
| author_facet |
Lim, Yi Xuan Tan, Consilz |
| author_sort |
Lim, Yi Xuan |
| title |
Do negative events really have deteriorating effects on stock performance? A comparative study on Tesla (US) and Nio (China) |
| title_short |
Do negative events really have deteriorating effects on stock performance? A comparative study on Tesla (US) and Nio (China) |
| title_full |
Do negative events really have deteriorating effects on stock performance? A comparative study on Tesla (US) and Nio (China) |
| title_fullStr |
Do negative events really have deteriorating effects on stock performance? A comparative study on Tesla (US) and Nio (China) |
| title_full_unstemmed |
Do negative events really have deteriorating effects on stock performance? A comparative study on Tesla (US) and Nio (China) |
| title_sort |
do negative events really have deteriorating effects on stock performance? a comparative study on tesla (us) and nio (china) |
| publisher |
University of Economics Ho Chi Minh City |
| publishDate |
2023 |
| url |
https://www.emerald.com/insight/content/doi/10.1108/JABES-07-2021-0106/full/html http://scholar.dlu.edu.vn/thuvienso/handle/DLU123456789/115464 |
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