We examine the effect of public opinion
measured by Weibo tweets’ tone about the COVID-19 virus pneumonia event on
firm’s stock return. During January and February 2020, tweets about new virus
pneumonia experience an explosive increase with the event continually
discussed, and the proportion of positive mood has a gradually growth. Our
baseline results show that higher positive tweets ratio will lead to higher
stock return, compared to both total tweets’ number or negative tweets’ number.
The result will be suggestive to countries and governments.
JEL classification numbers: G30
Keywords: COVID-19, public
opinion, Weibo, tweets, stock market.