Panic bank runs, global market contagion and the financial consequences of social media

Oluwatoyin Esther Dosumu; Rilwan Sakariyahu; Olayinka Oyekola; Rodiat Lawal

doi:10.1016/j.econlet.2023.111170

Panic bank runs, global market contagion and the financial consequences of social media

Oluwatoyin Esther Dosumu, Rilwan Sakariyahu, Olayinka Oyekola, Rodiat Lawal

Research output: Contribution to journal › Article › peer-review

Abstract

This paper provides empirical analysis on how social media amplifies bank runs, using the recent bank turmoil in the US. Employing data for 94 countries, our findings show that social media provides a conduit through which an immediate negative and significant impact of the bank crisis transmits across global investor sentiments and market outcomes. The results also indicate a significant spill-over influence of the turmoil on European and G7 economies, while there appears to be no significant impact on major markets in Asia and Africa.

Original language	English
Article number	111170
Journal	Economics Letters
Volume	228
Early online date	16 May 2023
DOIs	https://doi.org/10.1016/j.econlet.2023.111170
Publication status	Published - 1 Jul 2023

Keywords

Bank run
Contagion
Global markets
Investor sentiment
Social media

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.econlet.2023.111170Licence: CC BY-NC-ND

Cite this

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title = "Panic bank runs, global market contagion and the financial consequences of social media",

abstract = "This paper provides empirical analysis on how social media amplifies bank runs, using the recent bank turmoil in the US. Employing data for 94 countries, our findings show that social media provides a conduit through which an immediate negative and significant impact of the bank crisis transmits across global investor sentiments and market outcomes. The results also indicate a significant spill-over influence of the turmoil on European and G7 economies, while there appears to be no significant impact on major markets in Asia and Africa.",

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AU - Dosumu, Oluwatoyin Esther

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AU - Oyekola, Olayinka

AU - Lawal, Rodiat

PY - 2023/7/1

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AB - This paper provides empirical analysis on how social media amplifies bank runs, using the recent bank turmoil in the US. Employing data for 94 countries, our findings show that social media provides a conduit through which an immediate negative and significant impact of the bank crisis transmits across global investor sentiments and market outcomes. The results also indicate a significant spill-over influence of the turmoil on European and G7 economies, while there appears to be no significant impact on major markets in Asia and Africa.

KW - Bank run

KW - Contagion

KW - Global markets

KW - Investor sentiment

KW - Social media

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DO - 10.1016/j.econlet.2023.111170

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Panic bank runs, global market contagion and the financial consequences of social media

Abstract

Keywords

UN SDGs

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