The role of the media in a bubble

Campbell, Gareth; Turner, John D.; Walker, Clive

doi:10.1016/j.eeh.2012.07.002

Cited by 42 publications

(13 citation statements)

References 23 publications

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“…Some authors, such as Robert Shiller (2009), argue that there was a substantial effect of the media in instigating bubbles, while other authors find the obverse. Campbell et al (2012), for example, find that press coverage did not feed the British railway mania in the 1840s, and , find that media reporting played only a very limited role in the internet bubble of the 1990s. Longitudinal studies for the twentieth century show that during crises, the financial markets were far more sensitive to media reports, both of reports containing new information and of more 'persuasive' reports only increasing exposure of a particular stock (Tetlock 2007 industries, such as contact lenses, advertising may have increased price competition and in that way increased industrial concentration (Sutton 1991).…”

Section: Market Functioningmentioning

confidence: 99%

Soft power: the media industries in Britain since 1870

Bakker

2014

The Cambridge Economic History of Modern Britain

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This paper discusses the emergence and growth of various media industries in Britain. It shows how a rise in real wages and leisure time, rapid urbanisation and the development of fast urban transport networks, and a rapid growth of the market's size let to a sharp rise in the demand for media and entertainment products and services, which was met by ever-new technologies coming from constantly emerging new industries, such as recorded music, film, radio, television, cable, videogames, internet, and social media. The paper argued these industries contributed to a sharp productivity rise by industrialising traditional media and entertainment, and to a sharp welfare growth as consumers valued them so highly that they were willing to incur ever-higher opportunity costs to consume them. It also discusses how four factors quality races, marginal revenues equalling marginal profits, the superstar effect and agglomeration benefits shaped the evolution of individual industries, and it assesses the success or failure of British industrial policy towards media industries. The paper observes media's impact on the aggregate economy through opportunity costs, expectations and aspirations, the functioning of the market, education, and, finally, through shaping the means of institutional change. In addition, the paper makes new decennial benchmark estimates for British consumer expenditure on books between

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Section: Market Functioningmentioning

confidence: 99%

Soft power: the media industries in Britain since 1870

Bakker

2014

The Cambridge Economic History of Modern Britain

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“…Investment, speculation, and manias thus feature prominently in the periodical literature. Particularly interesting here, in the light of contemporary debates on the role of the media, and its culpability in fuelling recent booms, are two articles, one by Taylor and the other by Campbell et al. ( Explorations in Economic History ), examining the role of the financial press in the early Victorian period. In a fascinating article Taylor explores the complex relationship between newspapers and advertisers in the mid‐nineteenth century, demonstrating that the press was less beholden to its paymasters than some previous accounts have suggested.…”

Section: –1850mentioning

confidence: 99%

“…The role of the same media during one of the greatest bubbles in economic history—the railway mania of the 1840s—is the focus of the article by Campbell et al. They find that newspapers did not, contrary to popular belief at the time, play a major role in driving investor sentiment during the mania, nor indeed in bringing it to an end. These conclusions suggest the need to look elsewhere for the factors that influenced the rise and fall of the railway boom.…”

Section: –1850mentioning

confidence: 99%

Review of periodical literature published in 2012

Costen

Davis

Paul

et al. 2014

The Economic History Review

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“…Some authors of this stream look for research material in the distant past. For example, Campbell et al (2012) investigate the role of news media in stock prices during the British railway mania of 1840. In Japan, Okada and Yamasaki (2014) demonstrate that mid-year stock market return seasonality as reflected in the saying 'sell in May and go away' is almost perfectly associated with the sentiment proxy they adapted and extracted from Japanese media news.…”

Section: Sentiment Analysis Literaturementioning

confidence: 99%

Can Social Media Content Increase Financial Market Returns? Survey Results from Poland

Cwynar

Pater

2017

Organizacija

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Background and Purpose:In recent years classic financial market theory based on decision makers' rationality has been challenged by repeated anomalies that became a 'new normal'. As a result, what we witness today is a considerable turn to behavioral concepts that can shed a new light on choices made by market participants. The astonishing development of social media accelerated scientific validation of such concepts, since the media opened new and capacious 'laboratory space' for testing behavioral hypotheses. The main purpose of the article is to examine whether financial market professionals believe that social media content can be useful in achieving additional financial market returns and to investigate the factors behind this belief. Design/Methodology/Approach: We surveyed a sample of over 400 financial market professionals at institutions operating in Poland, and analyzed the results using logit regression models. Results: We established that almost 60% of the surveyed finance professionals recognized the potential of social media for achieving additional returns. We also found out that the differences in respondents' perception of this potential could be explained mainly by heterogeneity of their job experience and, to a lesser degree, by their job position. Interestingly, more experienced individuals were less likely to recognize this potential. Firm-specific factors did not have a significant effect on the dependent variable. Conclusion: The opinions of financial market professionals regarding the link between social media and additional returns are mixed, which is consistent with the current body of evidence brought by sentiment-based research. Our findings confirm the key role of previous experience in explaining attitudes towards novelties and innovations (such as social media), a phenomenon known from other fields and everyday experience.

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The role of the media in a bubble

Cited by 42 publications

References 23 publications

Soft power: the media industries in Britain since 1870

Soft power: the media industries in Britain since 1870

Review of periodical literature published in 2012

Can Social Media Content Increase Financial Market Returns? Survey Results from Poland

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