YouTube view count, investor attention and stock returns

Abstract

Stock-related YouTube views and videos have significantly increased during and after COVID-19. Our empirical research shows that YouTube view count has a significantly positive impact on retail investor buying behavior, and short-term stock return. During and after COVID-19, the 15-day average Buy-and-Hold Abnormal Returns (BHAR) remained positive for firms with more YouTube views. This empirical result suggests that YouTube view count could function as an effective proxy for investor attention. The positive impact of YouTube views on stock returns continues to be significant even after controlling for other measures of investor attention, such as the Search Volume Index and abnormal trading volume. The influence of YouTube views is more pronounced for smaller companies, compared to larger companies. Our findings collectively suggest that social media platforms play a significant role in affecting retail investors' investment decisions through social transmission.