Stock market prices reflect information regarding firms’ business environments, operations and, in general, their fundamentals. Recently, various studies have analysed the link between news coverage and stock prices but no evidence exists on how channels and ways of communication of information affect investors’ behaviour. We analyses these aspects focussing on a large sample of corporate governance news published between 2003 and 2007 in “Il Sole 24 Ore”, Italy’s major financial newspaper. We show that before news is made public investors are only able to assess the type of corporate governance event underlying it. After publication, investors are influenced by the content (positive or negative) and the tone of communication (strong or weak) of the news.

Carretta, A., Farina, V., Fiordelisi, F., Martelli, D., Schwizer, P. (2011). The impact of corporate governance press news on stock market returns. EUROPEAN FINANCIAL MANAGEMENT, 17(1), 100-119 [10.1111/j.1468-036X.2010.00548.x].

The impact of corporate governance press news on stock market returns

CARRETTA, ALESSANDRO;FARINA, VINCENZO;
2011-01-01

Abstract

Stock market prices reflect information regarding firms’ business environments, operations and, in general, their fundamentals. Recently, various studies have analysed the link between news coverage and stock prices but no evidence exists on how channels and ways of communication of information affect investors’ behaviour. We analyses these aspects focussing on a large sample of corporate governance news published between 2003 and 2007 in “Il Sole 24 Ore”, Italy’s major financial newspaper. We show that before news is made public investors are only able to assess the type of corporate governance event underlying it. After publication, investors are influenced by the content (positive or negative) and the tone of communication (strong or weak) of the news.
2011
Pubblicato
Rilevanza internazionale
Articolo
Esperti anonimi
Settore SECS-P/11 - ECONOMIA DEGLI INTERMEDIARI FINANZIARI
English
Con Impact Factor ISI
corporate governance; shareholder value; event study; text analysis
Carretta, A., Farina, V., Fiordelisi, F., Martelli, D., Schwizer, P. (2011). The impact of corporate governance press news on stock market returns. EUROPEAN FINANCIAL MANAGEMENT, 17(1), 100-119 [10.1111/j.1468-036X.2010.00548.x].
Carretta, A; Farina, V; Fiordelisi, F; Martelli, D; Schwizer, P
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/36213
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