Attention Allocation of Investors on Social Media: The Role of Prospect Theory.
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| Title: | Attention Allocation of Investors on Social Media: The Role of Prospect Theory. |
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| Authors: | Reichenbach, Felix (AUTHOR), Walther, Martin (AUTHOR) |
| Source: | Journal of Behavioral Finance. Jul-Sep2025, Vol. 26 Issue 3, p317-334. 18p. |
| Subjects: | Investors, Prospect theory, Market sentiment, Securities, Social media, Selectivity (Psychology) |
| Abstract: | This study examines the attention allocation of investors on social media. Specifically, we consider the role of cumulative prospect theory (CPT). Using data from the largest finance-related subreddits on Reddit, we investigate whether CPT values based on historical returns can explain which stocks are discussed, and which stocks are ignored. Our results indicate that the behavior of millions of redditors is consistent with CPT, with stocks having extreme CPT values being significantly more likely to be discussed. Furthermore, we find that stocks with high momentum and extreme price-to-book values are more attractive to social media investors. [ABSTRACT FROM AUTHOR] |
| Copyright of Journal of Behavioral Finance is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Psychology and Behavioral Sciences Collection |
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| FullText | Links: – Type: pdflink Text: Availability: 1 |
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| Header | DbId: pbh DbLabel: Psychology and Behavioral Sciences Collection An: 187437377 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 0 |
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| Items | – Name: Title Label: Title Group: Ti Data: Attention Allocation of Investors on Social Media: The Role of Prospect Theory. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Reichenbach%2C+Felix%22">Reichenbach, Felix</searchLink> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Walther%2C+Martin%22">Walther, Martin</searchLink> (AUTHOR) – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Journal+of+Behavioral+Finance%22">Journal of Behavioral Finance</searchLink>. Jul-Sep2025, Vol. 26 Issue 3, p317-334. 18p. – Name: Subject Label: Subjects Group: Su Data: <searchLink fieldCode="DE" term="%22Investors%22">Investors</searchLink><br /><searchLink fieldCode="DE" term="%22Prospect+theory%22">Prospect theory</searchLink><br /><searchLink fieldCode="DE" term="%22Market+sentiment%22">Market sentiment</searchLink><br /><searchLink fieldCode="DE" term="%22Securities%22">Securities</searchLink><br /><searchLink fieldCode="DE" term="%22Social+media%22">Social media</searchLink><br /><searchLink fieldCode="DE" term="%22Selectivity+%28Psychology%29%22">Selectivity (Psychology)</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: This study examines the attention allocation of investors on social media. Specifically, we consider the role of cumulative prospect theory (CPT). Using data from the largest finance-related subreddits on Reddit, we investigate whether CPT values based on historical returns can explain which stocks are discussed, and which stocks are ignored. Our results indicate that the behavior of millions of redditors is consistent with CPT, with stocks having extreme CPT values being significantly more likely to be discussed. Furthermore, we find that stocks with high momentum and extreme price-to-book values are more attractive to social media investors. [ABSTRACT FROM AUTHOR] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of Journal of Behavioral Finance is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.) |
| PLink | https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=pbh&AN=187437377 |
| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.1080/15427560.2024.2309145 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 18 StartPage: 317 Subjects: – SubjectFull: Investors Type: general – SubjectFull: Prospect theory Type: general – SubjectFull: Market sentiment Type: general – SubjectFull: Securities Type: general – SubjectFull: Social media Type: general – SubjectFull: Selectivity (Psychology) Type: general Titles: – TitleFull: Attention Allocation of Investors on Social Media: The Role of Prospect Theory. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Reichenbach, Felix – PersonEntity: Name: NameFull: Walther, Martin IsPartOfRelationships: – BibEntity: Dates: – D: 01 M: 07 Text: Jul-Sep2025 Type: published Y: 2025 Identifiers: – Type: issn-print Value: 15427560 Numbering: – Type: volume Value: 26 – Type: issue Value: 3 Titles: – TitleFull: Journal of Behavioral Finance Type: main |
| ResultId | 1 |
