PlumX Metrics
SSRN
Embed PlumX Metrics

Home-Country Media Slant and Equity Prices

SSRN, ISSN: 1556-5068
2019
  • 2
    Citations
  • 2,031
    Usage
  • 22
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    2
    • Citation Indexes
      2
  • Usage
    2,031
    • Abstract Views
      1,792
    • Downloads
      239
  • Captures
    22
  • Ratings
    • Download Rank
      256,474

Article Description

We study national newspaper reporting and investor beliefs across the U.S., Germany, and Japan. Using novel large-scale hand-coded media data for the automotive industry, we show that news about companies is systematically more positive in companies’ home countries than abroad. Home-country media slant increases during bad times for companies, and it correlates strongly with equity prices. Cross-country difference in news tone predicts temporary price deviations of cross-listed stocks. Abnormally high home-media news tone predicts low monthly domestic stock returns. The effects are strongest for confirmatory news and weakest when home-biased investors are likely distracted by sporting events.

Bibliographic Details

Benjamin Golez; Rasa Karapandza

Elsevier BV

Multidisciplinary; media slant; media bias; textual analysis; investor sentiment; cross-listed stocks; confirmatory bias

Provide Feedback

Have ideas for a new metric? Would you like to see something else here?Let us know