Conference Time: 5th July 2025, 09:42:02am EEST
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Session 2.24: The Influence of Social Media Bots on Financial Markets
Time:
Wednesday, 27/Aug/2025:
5:00pm - 5:30pm
Location: Carmen Conference hall Meeting hall “Carmen”, which can accommodate up to 70 people
Presentations
The Influence of Social Media Bots on Financial Markets
Prof. Mahnaz Paydarzarnaghi1 , Prof. David Rakowski 2
1 Roger Williams University, United States of America; 2 University of Texas at Arlington, United States of America
This study examines the effects of bot-generated social media content on stock market behavior.
We examine whether bots amplify or suppress the impact of social media on trading
activity and returns. Using data from Twitter (now X), covering 2019 to 2022, we construct
measures capturing the likelihood of bot activity in posts mentioning well-known stocks
using cashtags. Our findings show that bot activity reduces the impact of social media on
both trading volume and returns. Our results imply that investors have the ability to distinguish
between genuine and automated activity on social media and that genuine activity is
perceived as a more reliable source of financial information.
