When central bank research meets Google search: A sentiment index of global financial stress

Stolbov, Mikhail; Shchepeleva, Maria; Karminsky, Alexander

doi:10.1016/j.intfin.2022.101692

Cited by 8 publications

(2 citation statements)

References 53 publications

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“…These media, as carriers of valuable information, have sparked a new area of econometrics research that focuses on converting qualitative sentiment data into quantitative variables, which are then applied in econometric analysis to explore relationship between sentiment and other variables in economic analysis (Algaba et al, 2020). This results in the development of a novel research field known as sentometrics (Stolbov et al, 2022).…”

Section: Related Literaturementioning

confidence: 99%

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Google Trends, bank popularity and depositors' fears in Indonesia

Saputro,

Pamungkas,

Trinugroho

et al. 2024

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PurposeThis paper investigated whether a bank’s popularity and depositors' fear of Google search volume could affect bank deposits and credit.Design/methodology/approachThe authors used two different quarterly data from Google Trends and banking data from 2012 Q1 to 2020 Q1. Based on available data, Google Trends data start from 2012. The authors exclude data after 2020 Q1 because the Covid-19 pandemic arguably increased the volume of Internet users due to shifting behavior to online activities. They merged and cleaned the data by winsorizing at 5 and 95 percentiles to avoid any outlier problems, reaching 74 banks in the sample. They used panel data estimation of quarterly data following Levy-Yeyati et al. (2010) and Trinugroho et al. (2020).FindingsThe results show that a higher search volume of a bank’s name leads to higher deposits. A higher search volume of depositor fear reduces deposits and credit. The authors also found that banks with high risk and a high search volume of their name have a significantly lower volume of deposits.Originality/valueTo the best of the authors’ knowledge, not many papers in banking and finance have used Google Trends data to gauge related issues regarding depositors' behavior. The authors have filled a gap in the literature by investigating whether the popularity of Google search and depositors' fear could impact deposits and credit. This study also attempted to establish whether Google Trends data could be a reliable source of information to predict depositors' behavior by using a Zscore to measure bank risk.

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Section: Related Literaturementioning

confidence: 99%

“…, 2020). This results in the development of a novel research field known as sentometrics (Stolbov et al. , 2022).…”

Section: Related Literaturementioning

confidence: 99%