In this paper, we estimate an agent-based model (ABM) to investigate herding behaviors in the formation of investor sentiment. We formalize a simple opinion dynamics model in a social network framework and rely on a numerical method to estimate its parameters. We derive a sentiment proxy from...

We investigate the response of shareholders to Environmental, Social, and Governance-related reputational risk (ESG-risk), focusing exclusively on the impact of social media. Using a dataset of 114 million tweets about firms listed on the S&P100 index between 2016 and 2022, we extract...