Company online presence and its effect on stock returns

Abstract

This paper investigates the relationship between stock prices and the online presence of companies. Mainly, we study the effect of the online presence of a company on its subsequent stock returns. Moreover, we examine the impact of companies’ engagement efforts and the popularity of their search-engine keywords on their stock returns. Based on the companies listed on the Dow Jones industrial average index, results suggest that stock returns are impacted by a change in online presence, as measured by search volumes. Nevertheless, the online engagement efforts show no significant relationship with the stock returns.