Vocabulary Herfindahl Index (VocaHIn): Linguistic dominance and collective effervescence in WallStreetBets

Ko Hayakawa, Yoichi Otsubo*, Ser huang Poon, Siliang Wei

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Our analysis of over 150,000 WallStreetBets comments reveals dominant phrases when members of the community experience collective excitement and solidarity (Collective Effervescence). Using the novel Vocabulary Herfindahl Index (VocaHIn), we find that stock returns volatility increases after CE, and vice versa.

Original languageEnglish
Article number112027
JournalEconomics Letters
Volume244
DOIs
Publication statusPublished - Nov 2024

Keywords

  • Collective effervescence
  • Meme stocks
  • Retail investors
  • Vocabulary Herfindahl Index (VocaHIn)

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