The Kinks of Financial Journalism

32 Pages Posted: 3 Nov 2014 Last revised: 1 Aug 2020

See all articles by Diego Garcia

Diego Garcia

University of Colorado at Boulder - Leeds School of Business

Date Written: October 31, 2014

Abstract

This paper studies the content of financial news as a function of past market returns. As a proxy for media content we use positive and negative word counts from general financial news columns from the Wall Street Journal and the New York Times. Our empirical analysis allows us to discriminate between theories that predict hyping good stock performance to those that emphasize negative news. The evidence is conclusive: negative market returns taint the ink of typewriters, while positive returns barely do.

Keywords: media content, stock returns, journalism

Suggested Citation

Garcia, Diego, The Kinks of Financial Journalism (October 31, 2014). Available at SSRN: https://ssrn.com/abstract=2517591 or http://dx.doi.org/10.2139/ssrn.2517591

Diego Garcia (Contact Author)

University of Colorado at Boulder - Leeds School of Business ( email )

Boulder, CO 80309-0419
United States

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