We study how the social transmission of public news influences investors' beliefs and the securities markets. Using data on social networks, we find that earnings announcements from firms in higher-centrality counties generate a stronger immediate price, volatility, and trading volume reactions. Post-announcement, such firms experience weaker price drift and faster volatility decay but higher and more persistent volume. These findings suggest greater social connectedness facilitates the timely incorporation of news into prices, as well as opinion divergence and excessive trading. We propose the social churning hypothesis, which is confirmed using granular data from StockTwits messages and household trading records.

中文翻译：

---

社交网络中的新闻传播和股市反应


我们研究公共新闻的社会传播如何影响投资者的信念和证券市场。利用社交网络上的数据，我们发现中心度较高的县的公司发布的盈利公告会产生更强烈的即时价格、波动性和交易量反应。公告发布后，此类公司的价格漂移较弱，波动性衰减较快，但成交量较高且更持久。这些发现表明，更大的社会联系有助于将新闻及时纳入价格，以及意见分歧和过度交易。我们提出了社交搅动假说，并使用 StockTwits 消息和家庭交易记录中的详细数据证实了这一假说。