This paper investigates how social media affects financial markets by seeking out the grounds of financial social media prediction power. The first goal of this study is to understand the impact of the position in the social network in gathering superior information about future stock returns....

This paper focuses on the skills of social media users in issuing investment recommendations. On average, the recommendations of users translate into positive abnormal returns. The cross-section of skills across stocks outperforms, on average, the cross-section of skills across users. Modeling...