Giving context to accounting numbers: The role of news coverage

Chen, Kuo-Tay; Lu, Hsin-Min; Chen, Tsai-Jyh; Li, Shu-Hsing; Lian, Jian-Shuen; Chen, Hsinchun

doi:10.1016/j.dss.2010.08.025

Cited by 9 publications

(4 citation statements)

References 31 publications

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“…) and market behavior became the subject of study for several researchers, including, Antweiler and Frank (2004), who related financial blog reviews to the return of certain stocks; Tetlock (2007), Tetlock, Saar-Tsechansky, andMackskassy (2008), Fang andPeress (2009) and Chen et al (2011), who studied the relationship between journalism and the profitability of certain companies; Porshnev, Redkin, and Shevchenko (2013) and Bogle and Potter (2015), who discussed the possibility of predicting the market based on the tone of Twitter posts; Rogers, Skinner, and Zechman (2015), who evaluated if the way in which news stories are spread by the media affects the response of asset prices;…”

Section: Introductionmentioning

confidence: 99%

Pessimismo E Incerteza Das Notícias E O Comportamento Dos Investidores No Brasil

Galdi

Gonçalves

2018

Rev. adm. empres.

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How investors impound qualitative information released by the media into prices, especially in a less efficient market such as Brazil, helps understand the types of news most sensitive to investors. This study investigates the relationship between the content of the daily editions of specialized financial media in Brazil, captured by a metric of textual tone, and returns and volatility of market indexes. Our database contains 1,237 daily editions of the newspaper "Valor Econômico," between 01/02/2012 and 12/30/2016. The results indicate that the market put more weight on the words "uncertainty" and "negative" in the news. "Uncertainty" has negative relation to current market-returns and weak evidence that news with "negative" terms have positive associations with current market-volatility. The evidences obtained point to the existence of informative content in the news pub lished by specialized media in Brazil, especially with the words "negative" and "uncertainty." KEYWORDS | Sentiment analysis, textual analysis, financial media, Brazil, efficient markets. RESUMO Investidores formam suas expectativas sobre os fluxos de caixa futuros das empresas considerando as informa ções quantitativas e qualitativas a que têm acesso. O entendimento de como os preços de mercado incorporam as informações qualitativas divulgadas pela mídia FERNANDO CAIO GALDI

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Section: Introductionmentioning

confidence: 99%

Pessimismo E Incerteza Das Notícias E O Comportamento Dos Investidores No Brasil

Galdi

Gonçalves

2018

Rev. adm. empres.

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“…Cutler et al (1989) documented that media coverage does not affect stock return if no major macroeconomic events are occurring. Chen et al (2011) suggested that financial news in the Wall Street Journal plays an important role in conveying value-related information. The media coverage decreases investors' reaction to unexpected earnings.…”

Section: Literature Reviewmentioning

confidence: 99%

A Firm-Specific Study of the Impact of Media Coverage on Capital Flow

Yang

Yan

2016

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This study aims to investigate whether and how firm-specific media coverage can impact the capital flow decisions of investors in China's stock market. The media dataset includes articles about 42 listed financial companies that were published in three major securities newspapers from 2004 through 2013. A multidimensional perspective analysis is chosen to capture both the amount and content sentiment of media coverage. Specifically, the quantity model is built to investigate the impact of article amount on capital flow, while the quality model aims to capture the difference in media impact between positive news and negative news. In order to control the unobserved heterogeneity of firms, fixed effects model is employed. Our empirical analysis demonstrates that media coverage can significantly influence the capital flow decisions of investors; this holds for both the quantity aspect and the quality aspect. The quantity model shows that after controlling for risk factors such as size and book-to-market ratio, more capital flow will be allocated to the high-return stocks with high media coverage. The quality model finds that stocks with positive media coverage will be allocated more capital flow than those with negative media coverage, given an identical stock return. Furthermore, a simple but effective identification strategy is constructed to explore the mechanism behind this media coverage and capital flow relationship. Our results suggest that the information view does not offer sufficient explanation power; instead media coverage tends to be more about "attention-grabbing" than conveying information.

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“…There are several existing datasets, including Twitter (476 million posts; Leskovec 2011a) and Wikipedia (5 million posts). There is a rapidly increasing set of papers that use text mining approaches to analyze the information in news (Chen et al 2011;Schumaker and Chen 2009), online reviews (Bai 2011), Twitter (Yang and Leskovec 2011), corporate annual reports (Balakrishnan et al 2010), and Wikipedia (Medelyan et al 2009). Social network analysis has been used with older communication modes such as news (Ma et al 2009) and newer modes such as Twitter (Castillo et al 2011).…”

Section: Ro7: How Can Data Sets Be Obtained As the Basis For Research?mentioning

confidence: 99%

Data Mining of Electronic Mail and Auditing: A Research Agenda

Debreceny

Gray

2011

Journal of Information Systems

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A potentially important form of audit evidence is corporate email, which includes the background, intent, and outcome of managerial actions. Emails are semistructured data, with known fields for sender, recipient, subject, and date, as well as the email body and attachments. Data mining of emails (DME) combines understanding of social networks, textual analysis using natural language processing and other techniques, and domain knowledge. Email data mining research received a considerable boost by the availability of a large archive of emails from the now-defunct Enron Corporation. The paper provides an overview of DME techniques, and the potential expanded applications of DME by auditors. The paper also discusses a set of research areas and research opportunities.

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Giving context to accounting numbers: The role of news coverage

Cited by 9 publications

References 31 publications

Pessimismo E Incerteza Das Notícias E O Comportamento Dos Investidores No Brasil

Pessimismo E Incerteza Das Notícias E O Comportamento Dos Investidores No Brasil

A Firm-Specific Study of the Impact of Media Coverage on Capital Flow

Data Mining of Electronic Mail and Auditing: A Research Agenda

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