Is public information really public? The role of newspapers

Riccardo Ferretti () and Francesco Pattarin ()

Centro Studi di Banca e Finanza (CEFIN) (Center for Studies in Banking and Finance) from Universita di Modena e Reggio Emilia, Facoltà di Economia "Marco Biagi"

Abstract: Our paper offers evidence that printed media can affect stock prices by covering public news (nonevents) even without resorting to spin or emphasis. However, the price reaction is limited to small caps, suggesting that small investors still obtain public information mainly through newspapers. The absence of spin or emphasis is the core element that differentiates our study from existing evidence, making it unique, to the best of our knowledge, in the financial literature on the media and asset pricing.

Keywords: nonevent; market efficiency; small investors’ trading; small caps (search for similar items in EconPapers)
JEL-codes: G14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cul
Date: 2008-01
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Persistent link: http://EconPapers.repec.org/RePEc:mod:wcefin:08013

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