The Role of Corporate Governance News: Evidence from Italy

22 Pages Posted: 17 Feb 2009

See all articles by Alessandro Carretta

Alessandro Carretta

University of Rome Tor Vergata - Faculty of Economics

Vincenzo Farina

University of Rome Tor Vergata

Franco Fiordelisi

University of Essex - Essex Business School; University of Rome III, Italy

Duccio Martelli

University of Perugia - Faculty of Economics

Paola Schwizer

University of Parma

Date Written: February 14, 2009

Abstract

Stock market prices reflect information on firms' business environments, operations and, in general, firms' fundamentals. Recently, various studies analyze the link between news coverage and stock prices showing that mass media has a significant impact on financial markets. This paper analyze the interactions between the mass media and the stock market focusing on corporate governance news release. By using a large sample of corporate governance news released between 2003 and 2007, we examine the link between abnormal stock returns and corporate governance news. We find evidence that stock returns are influenced by the semantic content of corporate governance news, by firm performance and health and by the interaction of these variables.

Keywords: corporate governance, shareholder value, event study, text analysis

JEL Classification: G14, G34

Suggested Citation

Carretta, Alessandro and Farina, Vincenzo and Fiordelisi, Franco and Martelli, Duccio and Schwizer, Paola, The Role of Corporate Governance News: Evidence from Italy (February 14, 2009). Available at SSRN: https://ssrn.com/abstract=1343631 or http://dx.doi.org/10.2139/ssrn.1343631

Alessandro Carretta

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
Rome, rome 00100
Italy

Vincenzo Farina

University of Rome Tor Vergata ( email )

Via Columbia n.2
Rome, rome 00133
Italy
+390672595903 (Phone)
+39062040219 (Fax)

HOME PAGE: http://economia.uniroma2.it/faculty/104/farina-vincenzo

Franco Fiordelisi (Contact Author)

University of Essex - Essex Business School ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

University of Rome III, Italy ( email )

Via Silvio D'amico, 77
Rome, Rome 00145
Italy

HOME PAGE: http://host.uniroma3.it/docenti/fiordelisi/?home

Duccio Martelli

University of Perugia - Faculty of Economics ( email )

Via Pascoli, 20
Perugia, Perugia 06123
Italy
(+39)-075-585.5255 (Phone)
(+39)-075-585.5257 (Fax)

Paola Schwizer

University of Parma ( email )

Via J.F. Kennedy 6
Parma, 43100
Italy

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