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"Information Content of Financial YouTube Channels: A Case Study of 3PROTV and the Korean Stock Market"
This study examines the content of 3PROTV, a major Korean financial YouTube channel, and analyzes whether its content provides useful insights for stock selection and market timing.

1. Research Objectives

• Determine whether 3PROTV content conveys positive or negative sentiment about specific stocks.

• Assess whether 3PROTV content can be used to predict future market returns.

2. Research Methodology

• Collected transcripts of 3PROTV’s YouTube content from August 2, 2022, to November 28, 2022.

• Identified mentioned stocks using DataGuide’s Korean company name database.

• Analyzed sentiment levels using KOSELF (Korean Sentiment Lexicon for Finance).

• Used the Fama-French 5-Factor Model to estimate expected returns and calculate abnormal returns.

• Developed a sentiment index to assess its predictive power for future market portfolio returns.

• Controlled for News Sentiment Index (NSI), short-term interest rates, and liquidity risk factors (PctZero) to validate results.

3. Key Findings

• Stock Selection Insights:

  • Negatively mentioned stocks underperformed after being featured.

  • Positively mentioned stocks performed well before being featured but were often already priced in, limiting their investment value.

  • Investors may overreact to overhyped stocks or face higher volatility.

• Market Timing Indicator:

  • Changes in 3PROTV sentiment were effective in predicting market returns.

  • The 3PROTV sentiment index successfully predicted the direction of market portfolio returns for the following two days.

  • This predictive power remained significant even after controlling for external factors such as news sentiment, interest rates, and liquidity risk.

  • This suggests that 3PROTV content can provide valuable market timing insights.

4. Conclusion

This study shows that 3PROTV content is useful not only for selecting individual stocks but also for determining overall market timing. However, these findings are based on a limited sample period (2022), and negative sentiment appears to have a stronger influence on investor behavior than positive sentiment.

[Compliance Note]

• All posts by Sellsmart are for informational purposes only. Final investment decisions should be made with careful judgment and at the investor’s own risk.

• The content of this post may be inaccurate, and any profits or losses resulting from trades are solely the responsibility of the investor.

• Core16 may hold positions in the stocks mentioned in this post and may buy or sell them at any time.