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来源类型 | Discussion paper |
规范类型 | 论文 |
来源ID | DP11991 |
DP11991 Much Ado About Nothing: Is the Market Affected by Political Bias? | |
Massimo Massa; Alberto Manconi; Mancy Luo | |
发表日期 | 2017-04-24 |
出版年 | 2017 |
语种 | 英语 |
摘要 | We study whether investor behavior is affected by a political bias. We exploit an exogenous change in the market’s perception of political bias in the media: the 2007 acquisition of Dow Jones Newswires (DJNW) by News Corp. We find that investors react to a perceived pro-Republican bias of DJNW: after the acquisition, the prices of “Republican” stocks (stocks of firms making political contributions to the Republican Party) become less sensitive to sentiment in the DJNW. The effect is restricted to DJNW news, and cannot be detected in information channels unaffected by the News Corp. acquisition, such as corporate press releases and earnings surprises. It also appears driven by stocks traded by more profitable investors, short-term investors, and investors more likely to have a Democrat leaning. Finally, we show that in fact the New Corp. acquisition unlikely introduced a political bias in DJNW: there is no significant change in DJNW sentiment for the average Republican (or Democrat) stock after 2007. This suggests that the market tends to counteract a perceived media political bias, and is not always capable to distinguish between real and perceived biases. |
主题 | Financial Economics |
关键词 | Media and financial markets Political bias |
URL | https://cepr.org/publications/dp11991 |
来源智库 | Centre for Economic Policy Research (United Kingdom) |
资源类型 | 智库出版物 |
条目标识符 | http://119.78.100.153/handle/2XGU8XDN/540803 |
推荐引用方式 GB/T 7714 | Massimo Massa,Alberto Manconi,Mancy Luo. DP11991 Much Ado About Nothing: Is the Market Affected by Political Bias?. 2017. |
条目包含的文件 | 条目无相关文件。 |
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