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Investor Emotions and Earnings Announcements

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Domonkos F. Vamossy

Portfolio Management · Submitted 24 Jun 2020

abstract compiled · 2026-09-23 · no language-model review

The authors' main claim I find that investors are typically excited about firms that end up exceeding expectations, yet their enthusiasm results in lower announcement returns.

how it is stated · asserted 1.00 read the record →

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arXiv ID2006.13934 (version 2)
Pith IDRNJJCZRR, Pith's permanent record of this paper and its review
CitationDomonkos F. Vamossy. "Investor Emotions and Earnings Announcements." arXiv:2006.13934 (2020). https://pith.science/paper/RNJJCZRR
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The paper's own sentences, arranged. Each label is drawn from a closed vocabulary; the number beside it is the probability the classifier gave that label. Numbers in the tables are the authors', checked by code. No sentence in this record was written by a model.

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Compiled by classifier-1.13.0 via TypeSafe API, question bank abstract-p1-20260923, 2026-09-23: 1 request, 4,238 input tokens.

What the abstract itself states, as probabilities: claims first 0.03 · states limitation 0.06 · human participants 0.16 · controlled comparison 0.09 · randomized assignment 0.02 · states quantitative result 0.99 · compares with prior results 0.07 · mentions code or data availability 0.03.

The abstract, sentence by sentence

arXiv listing abstract v2. Results and the main claim are underlined; .

Armed with a decade of social media data, I explore the impact of investor emotions on earnings announcements. In particular, I test whether the emotional content of firm-specific messages posted on social media just prior to a firm's earnings announcement predicts its earnings and announcement returns. I find that investors are typically excited about firms that end up exceeding expectations, yet their enthusiasm results in lower announcement returns. Specifically, a standard deviation increase in excitement is associated with an 7.8 basis points lower announcement return, which translates into an approximately -5.8% annualized loss. My findings confirm that emotions and market dynamics are closely related and highlight the importance of considering investor emotions when assessing a firm's short-term value.

background contribution method result interpretation main claim

What the classifier reports for each sentence. The number is the probability it gave the label.
#sentencerolethe authors' own workstates the main conclusionstrength
s0 Armed with a decade of social media data, I explore the impact of investor emotions on earnings announcements. contribution 0.93 0.89 0.03 asserted 0.53
s1 In particular, I test whether the emotional content of firm-specific messages posted on social media just prior to a firm's earnings announcement predicts its earnings and announcement returns. contribution 0.86 0.81 0.03 unclear 0.39
s2 I find that investors are typically excited about firms that end up exceeding expectations, yet their enthusiasm results in lower announcement returns. result 1.00 0.95 0.68 asserted 1.00
s3 Specifically, a standard deviation increase in excitement is associated with an 7.8 basis points lower announcement return, which translates into an approximately -5.8% annualized loss. result 1.00 0.94 0.23 asserted 1.00
s4 My findings confirm that emotions and market dynamics are closely related and highlight the importance of considering investor emotions when assessing a firm's short-term value. interpretation 1.00 0.62 0.51 asserted 1.00

What kind of paper the classifier reports this is: empirical study 1.00 · evidence from analysis of existing data 0.98.

What was examined, and what was not

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Every quoted sentence on this record is the authors'. Every label is from Pith's closed vocabulary, with the probability shown beside it. Every number in the measurements table is the authors', checked by code. Record as JSON

The paper
Original abstract

Armed with a decade of social media data, I explore the impact of investor emotions on earnings announcements. In particular, I test whether the emotional content of firm-specific messages posted on social media just prior to a firm's earnings announcement predicts its earnings and announcement returns. I find that investors are typically excited about firms that end up exceeding expectations, yet their enthusiasm results in lower announcement returns. Specifically, a standard deviation increase in excitement is associated with an 7.8 basis points lower announcement return, which translates into an approximately -5.8% annualized loss. My findings confirm that emotions and market dynamics are closely related and highlight the importance of considering investor emotions when assessing a firm's short-term value.

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