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How your firm’s Tweets affect its value — both temporarily and permanently

Firm-generated tweets induce both permanent and temporary price impacts, which are linked to the tweet attributes of valence (i.e., positive and negative sentiment) and subject matter (i.e., consumer and competitor orientation).

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Photo by Souvik Banerjee from Unsplash.com

Researchers from University of Edinburgh and University of Maryland published a new paper in the Journal of Marketing that examines the impact of firm-generated social media content on firm stock price in real time.

The study, forthcoming in the Journal of Marketing, is titled “Measuring the Real-Time Stock Market Impact of Firm-Generated Content” and is authored by Ewelina Lacka, D. Eric Boyd, Gbenga Ibikunle, and P.K. Kannan.

Firms increasingly follow an ‘always on’ approach to social media marketing and post social media content multiple times during a day. For example, 92% of firms use their Twitter accounts more than once a day, with 42% of those tweeting 1 – 5 times a day and 19% tweeting 6 – 10 times a day. Although marketing managers engage heavily with this contemporary marketing practice, they are unable to demonstrate its immediate contribution to firm’s financial outcomes. 
 
This new research uses a combination of tweets disseminated by a sample of S&P 500 IT firms and ultra-high frequency trading data to examine the impact of firm-generated social media content on firm stock price in real time. The price impact estimation approach exploits the variance of sub-second level changes in stock price to capture the temporary and permanent stock price impacts of firm-generated tweets. Firms should aim for their firm-generated content to induce permanent price impact because it reflects information about the value of their firm. Temporary price impact can increase transaction costs for investors and the cost of capital acquisition for firms themselves because it reflects uncertainty about firm value. One could say, therefore, that permanent price impact is positive, while temporary price impact is undesirable, and potentially negative, especially if it leads to a higher firm cost of capital.

The researchers find that firm-generated tweets induce both permanent and temporary price impacts, which are linked to the tweet attributes of valence (i.e., positive and negative sentiment) and subject matter (i.e., consumer and competitor orientation).

Tweets reflecting negative or positive valence are consistently linked with a reduction in permanent price impact and an increase in temporary price impact as measured by the variance in stock price. Similar findings are obtained for tweets that only reflect a consumer or competitor orientation, although the impacts are smaller. Thus, both findings indicate that tweets reflecting only valence (positive or negative) or subject matter (consumer or competitor orientation) are associated with an increase in temporary price impact and a decrease in permanent price impact.

“Our results show the importance of interaction effects between tweet valence and subject matter in generating permanent price impact. The average negative and positive valence tweet when viewed through the lens of consumer or competitor orientation generates a permanent price impact, while a competitor-oriented tweet with a negative valence is likely to have the highest permanent price impact,” explains Lacka. From the perspectives of marketing practice and intraday social media marketing strategy design, this is a crucial finding because valence as a singular attribute is associated with decreasing permanent price impact. 
 
Boyd says “The implications of our study are clear. Investors in financial markets pay attention to firm-generated social media content and their ability to act on information at sub-second levels allows for instantaneous incorporation of social media content.” This is possible because of a new non-human breed of investor that now make most trade-by-trade decisions in financial markets—the so-called algorithmic traders or ‘algos.’ Algos scour many sources, including firms’ social media content such as tweets, for any indication of firm relevant information and act on it, often all within milliseconds. 
 
Marketing managers need to be aware of this when designing social media posts and campaigns. When social media posts contain what could be referred as “partial information” (i.e., only valence or subject matter), they lack the context that allows investors to make inferences about firm value. However, when, for example, tweet valence is set in the context of a specific subject (e.g., customer or competitor), it, on average, offers valid information that can be acted on by investors. “Our study shows that by carefully incorporating attributes, such as valence and subject matter, marketing managers can design social media content to generate varying degrees of permanent or temporary impact,” Ibikunle points out. 

In conclusion, these results suggest that firms should reflect valence and subject matter in their tweets if their aim is to improve the informativeness of their stocks with respect to firm value.

Kannan says that “By using permanent price impact as a metric to evaluate the long-term impact of tweets, social media managers can design campaigns that have an enduring impact on firm stock price, which should be a desirable outcome for firms.”

Not all intraday tweets will, nor should they, induce permanent impact on a firm’s stock price. Some tweets are aimed at the creation of social media ‘buzz,’ which is similar to the temporary price impacts we examine in this study. Firms can achieve social media ‘buzz’ by disseminating tweets as we show that tweets, in general, mostly generate temporary price impacts. The researchers urge caution, however, because temporary price impacts are linked to larger transaction costs for investors and cost of capital for firms.

Strategies

Renting out your place? Human connection key to a successful holiday rental

Warmth, friendliness and a sense of belonging, or the “homely” side of the experience, strengthen guest loyalty, making them more likely to return to the same host. However, these feelings alone didn’t necessarily make guests more likely to recommend the property to others.

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Striking up a connection with the property host is the factor that drives repeat bookings on holiday accommodation platforms such as Airbnb.

This is according to a new study, carried out by universities in the UK and Iran and published in the February 2026 edition of International Journal of Hospitality Management, that suggested that quality and value of accommodation also play a part in guest satisfaction, but personal connection is key to people deciding to stay again.

The research analyzed hundreds of online guest reviews and conducted in-depth interviews to understand what shapes guests’ evaluations of their stays in what is known as “peer-to-peer accommodation”.

Conducted over six years, the study shows that guests assess their stays using emotional cues such as warmth, atmosphere, and aesthetics; and cognitive cues such as cleanliness, safety, and convenience.

The study found that warmth, friendliness and a sense of belonging, or the “homely” side of the experience, strengthen guest loyalty, making them more likely to return to the same host. However, these feelings alone didn’t necessarily make guests more likely to recommend the property to others.

In contrast, affective and intellectual experiences – the enjoyment and perceived value of the stay – were stronger predictors of recommendations and positive reviews.

The research also examined how the quality of booking websites, such as Airbnb’s platform, influences guest behaviour. Although the website didn’t change how guests felt about the property itself, a well-designed and trustworthy site directly boosted guest loyalty and word-of-mouth.

Co-author Nektarios Tzempelikos, Professor of Marketing at Anglia Ruskin University (ARU), said: “Guests think carefully about both emotional and practical aspects before booking. Hosts who focus only on one side – either charm or functionality – may be missing the bigger picture.

“Platforms like Airbnb thrive when they’re designed for trust. Guests return to sites that are clear, reliable and easy to use. But it’s not just about tech, it’s about people. The most memorable stays come from warmth, authenticity and genuine local connection.

“By encouraging friendly, personal communication between hosts and guests, and balancing smart technology with a human touch, platforms can create experiences that feel less transactional and more meaningful.”

The study was carried out by researchers from Brunel University, University of Bradford, Newcastle University, Anglia Ruskin University and the University of Tehran.

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BizNews

In-aisle store displays might crowd shoppers and reduce overall sales

Retailers might seek strategies to boost product exposure without also increasing crowding – especially for cart shoppers who may experience greater crowding effects – and that excessive use of in-aisle fixtures will likely dampen sales at the aggregate level rather than increasing it. 

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In a study involving a real-world grocery store, in-aisle displays meant to boost product visibility were in fact associated with reduced sales and purchase-related behaviors, with results amplified for shopping cart users.

Mathias Streicher of Austria’s Department of Management and Marketing presents these findings in the open-access journal PLOS One.

Retailers often place extra product displays directly in aisles in an effort to boost visibility and enhance sales. However, in-aisle displays could increase spatial crowding, which occurs when people feel restricted in their freedom of movement and has been linked with purchase-avoidance tendencies. To help clarify if in-aisle displays result in more purchases, Streicher conducted several experiments with a partnering grocery store.

First, they tracked weekly sales for an aisle containing household, baby and pet staples over a six-week period during which five product-display stands were placed mid-aisle. The stands were then removed for six weeks. Comparison of sales data showed that in fact, sales increased after removal of the in-aisle displays, with the average weekly percentage of total store revenue from that aisle rising from 4.33 to 4.83 percent.

A second in-store experiment in the same aisle showed that people using shopping carts also stopped and physically handled products—behavior previously linked with sales—about 7.05 times more often when in-aisle displays were absent than when they were present. Non-cart shoppers also touched products more often when displays were removed, but the effect was smaller (3.81 times).

Finally, in an online experiment, 200 participants imagined using a shopping cart or basket while viewing photographs of the same aisle from the in-store experiments, with or without in-aisle displays. They tended to rate the aisle with displays as more crowded and reported lower levels of perceived control for aisles with displays than those without, with effects amplified for imagined cart versus basket use.

Together, these findings suggest retailers might seek strategies to boost product exposure without also increasing crowding – especially for cart shoppers who may experience greater crowding effects – and that excessive use of in-aisle fixtures will likely dampen sales at the aggregate level rather than increasing it. 

Further research could address some of this study’s limitations, such as by considering the effects of human crowding, promotional offers on products, and seasonal influences on shopping behaviors.

Streicher adds: “The research shows that adding merchandise into store aisles can actually reduce overall sales by making the environment feel crowded and harder to navigate. Importantly, this negative effect is even stronger for shoppers using carts, as they experience greater spatial constraints and reduced control while shopping.”

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BizNews

Structure of online reviews shapes their helpfulness

Reviews that grow increasingly positive are most helpful to readers, while those that turn negative are least helpful. For average-rated products, progressively negative trajectories enhance helpfulness, whereas reviews that start negative and grow positive are least effective.

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A study of nearly 200,000 Amazon reviews shows that the usefulness of online product reviews depends not only on what is said, but on how the information is structured.

The researchers, from the Universities of Cambridge and Queensland, studied Amazon reviews for products ranging from clothing to food to electronics. They found that how the information is organised matters as much as what is said, and that different review structures are more or less helpful, depending on how highly the reviewer has rated the product.

Their results, published in the journal Scientific Reports, could help companies and third-party review platforms design their review pages to prompt the sort of reviews that will be most helpful to potential customers.

For example, a reviewer assessing a laptop might praise its performance and design while criticising its battery life, so how should such information be structured to be most useful to the reader? Should the review begin with criticism and end on a positive note, or start positively before turning to drawbacks?

“Any target of evaluation typically has both positive and negative aspects, which makes crafting evaluative messages challenging,” said co-author Dr Yeun Joon Kim from Cambridge Judge Business School. “The key question is how to structure these elements within a single message. For example, one might present criticism upfront and then move to praise, or instead integrate negative points within an otherwise positive evaluation. Yet research has paid little attention to this structural dimension.

“We wanted to understand whether certain structures are consistently more effective, or whether their effectiveness depends on the performance of the target being evaluated.”

The study was based on 195,675 reviews of 5,487 distinct products, and assessed performance and related factors, and a helpfulness score as measured by reader votes.

The researchers identified nine possible structures of online reviews ranging from Type A reviews that start positive and become more positive as they go along, to Type I reviews that start negatively and become even more negative – with lots of variance in between.

For highly-rated products, reviews that grow increasingly positive are most helpful to readers, while those that turn negative are least helpful. For average-rated products, progressively negative trajectories enhance helpfulness, whereas reviews that start negative and grow positive are least effective. For low-rated products, reviews are judged most helpful when they open constructively before introducing criticism.

“The results are nuanced but very clear,” said co-author Dr Luna Luan from the University of Queensland, who carried out the research while earning her PhD at Cambridge Judge Business School. “Looking at the overall sentiment of reviews does not fully translate into message effectiveness. It is the broader structure of sentiment – how positivity and negativity evolve throughout the review – that shapes how readers interpret online reviews.”

“Our findings have practical implications for how platforms and companies can design review pages in order to elicit the sort of reviews that will be most helpful to readers based on how highly products are rated,” said Kim. “For example, instead of simply asking ‘Write your review here’, the online review form could instead include micro-prompts that guide how reviewers structure feedback in a way recipients find most helpful.”

The researchers found the most commonly used review styles are not necessarily the most helpful to readers. In particular, for average- and low-rated products, the structures that reviewers tend to adopt often differ from those that readers find most useful.

This mismatch likely reflects different underlying motivations. Reviewers are not always writing to maximise usefulness for others, but may instead be expressing their own experiences, frustrations or emotions – especially when evaluating products of moderate or poor quality. As a result, review writing often serves both as information sharing and as a form of self-expression. This helps explain why widely used review styles do not always align with what readers perceive as most informative or helpful.

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