• Information Systems Review
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• v.22 no.4
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• pp.59-74
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• 2020

This paper investigates the asymmetric effect of social sentimental on an individual stock price return. For this purpose, four companies such as POSCO, Korean Electricity, AMORE PACIFIC, KIA Motors are chosen from KOSPI listed companies in terms of dataperspective. The main estimation results are as follows: the positive opinions affect only the stock prices return of three companies while the negative opinions affect all of the companies. It shows that positive or negative texts give asymmetric effect on stock price return and the effect of negative opinions is bigger than that of positive opinions. The results imply that investors are more sensitive to the negatives since they have the tendency of loss aversion. Also, it indicates that subjective opinion on SNS can be used as the proxy for the investment sentiment.