Media coverage and stock returns: Evidence from Chinese cross-listed firms

Chen Wang; Rong Ding; Wenxuan Hou; Edward Lee

doi:10.1057/9781137454638_9

Media coverage and stock returns: Evidence from Chinese cross-listed firms

Chen Wang^*, Rong Ding, Wenxuan Hou, Edward Lee

^*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceeding › Chapter

Abstract

The media, such as newspapers and TV broadcasting, serves as an important outlet for disseminating information to the general public. Because information covered in the media could be obtained from other sources, such information is regarded as “stale information” (Tetlock, 2008) or “second-hand information” (Davies and Canes, 1978). According to the semi-strong form of the Efficient Market Hypothesis (Fama, 1970, 1991), the stock price should immediately reflect all publicly available information, implying that the information provided by the media should have little effect on stock prices. However, recent studies show that the news covered by the media does have an impact on stock returns (Tetlock, 2007, 2008; Tetlock et al., 2008; Fang and Peress, 2009).

Original language	English
Title of host publication	Experiences and Challenges in the Development of the Chinese Capital Market
Editors	Douglas Cumming, Alessandra Guariglia, Wenxuan Hou, Edward Lee
Publisher	Palgrave Macmillan
Pages	171-196
Number of pages	26
ISBN (Electronic)	9781137454638
ISBN (Print)	9781349560424
DOIs	https://doi.org/10.1057/9781137454638_9
Publication status	Published - 28 Jul 2015

Keywords / Materials (for Non-textual outputs)

stock market
stock price
stock return
mutual fund
media coverage

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10.1057/9781137454638_9

Cite this

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abstract = "The media, such as newspapers and TV broadcasting, serves as an important outlet for disseminating information to the general public. Because information covered in the media could be obtained from other sources, such information is regarded as “stale information” (Tetlock, 2008) or “second-hand information” (Davies and Canes, 1978). According to the semi-strong form of the Efficient Market Hypothesis (Fama, 1970, 1991), the stock price should immediately reflect all publicly available information, implying that the information provided by the media should have little effect on stock prices. However, recent studies show that the news covered by the media does have an impact on stock returns (Tetlock, 2007, 2008; Tetlock et al., 2008; Fang and Peress, 2009).",

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Media coverage and stock returns: Evidence from Chinese cross-listed firms. / Wang, Chen; Ding, Rong; Hou, Wenxuan et al.
Experiences and Challenges in the Development of the Chinese Capital Market. ed. / Douglas Cumming; Alessandra Guariglia; Wenxuan Hou; Edward Lee. Palgrave Macmillan, 2015. p. 171-196.

Research output: Chapter in Book/Report/Conference proceeding › Chapter

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T1 - Media coverage and stock returns

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AU - Wang, Chen

AU - Ding, Rong

AU - Hou, Wenxuan

AU - Lee, Edward

PY - 2015/7/28

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N2 - The media, such as newspapers and TV broadcasting, serves as an important outlet for disseminating information to the general public. Because information covered in the media could be obtained from other sources, such information is regarded as “stale information” (Tetlock, 2008) or “second-hand information” (Davies and Canes, 1978). According to the semi-strong form of the Efficient Market Hypothesis (Fama, 1970, 1991), the stock price should immediately reflect all publicly available information, implying that the information provided by the media should have little effect on stock prices. However, recent studies show that the news covered by the media does have an impact on stock returns (Tetlock, 2007, 2008; Tetlock et al., 2008; Fang and Peress, 2009).

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KW - stock return

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Media coverage and stock returns: Evidence from Chinese cross-listed firms

Abstract

Keywords / Materials (for Non-textual outputs)

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