In 5 essays covering the political and financial domains, this dissertation investigates whether information extracted from the microblogging forum Twitter can serve as an indicator of real-world events and explores the mechanism that explains the efficient aggregation of information. It illustrates, for example, that pre-election microblogs can reflect the political preferences of the general population and that the sentiment (i.e., bullishness) of stock-related tweets is correlated with abnormal stock returns. In addition, it provides empirical evidence supporting the idea that followership relationships and retweets represent the Twittersphere's "currency" for weighing information, since users providing above average investment advice are retweeted (i.e., quoted) more often and have more followers. Thus, this dissertation contributes to the understanding and use of social media content in social science research.
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In 5 essays covering the political and financial domains, this dissertation investigates whether information extracted from the microblogging forum Twitter can serve as an indicator of real-world events and explores the mechanism that explains the efficient aggregation of information. It illustrates, for example, that pre-election microblogs can reflect the political preferences of the general population and that the sentiment (i.e., bullishness) of stock-related tweets is correlated with abnorm...
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