Submission Date

4-26-2024

Document Type

Paper

Department

Business & Economics

Adviser

Jennifer VanGilder

Committee Member

Sheryl Goodman

Committee Member

Scott King

Department Chair

Jennifer VanGilder

Project Description

This research explores the impact of incorporating pop culture references in a company's Twitter feed on the company's stock price. Pop culture is integral to people's everyday lives, providing a sense of familiarity and fun between individuals. Many companies have started leveraging pop culture references on social media platforms like Twitter to establish a relatable and engaging connection with diverse consumer demographics. The primary purpose of this research is to investigate whether this strategy is beneficial within the stock market. It is hypothesized that incorporating pop culture references on Twitter can lead to increased sales and higher stock prices, as investors see the potential for long-term growth and continuously exceeding market expectations with consumers familiar with the pop culture references used. Through qualitative analysis of four companies’ Twitter feeds, pop culture references were detected daily and compared to each company's abnormal returns to answer the question. This research finds that pop culture references in Twitter feeds affect a company’s stock return, specifically when it uses slang in its tweets. These results underscore the importance of considering social media engagement, including incorporating pop culture references within market strategies, as it can lead to brand awareness and loyalty, shaping investor perceptions and stock market outcomes.

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