Clive Walker from Queen's University Belfast will give our Wednesday 2pm seminar on 16th April in Room 2B86.
The Causality of Media Influence: Real Estate News and the Stock Market
This article investigates the nature of news media influence in the stock market using a method that circumvents the causality issues usually prevalent in the study of media and markets. I find that real estate news in the Financial Times exhibits a significant robust relationship with the return premium of stocks of companies involved in the housing market. Since stock market changes do not cause reporting to change the casual effect of media is significant.