U.S. Macroeconomic News and International Stock Prices: Evidence from Newspaper Coverage

Gene Birz and Sandip Dutta

Accounting and Finance Research, 2016, vol. 5, issue 1, 247

Abstract: Existing studies provide mixed evidence that the U.S. macroeconomic news impacts international stock prices. We believe this may be related to the fact that economic surprises may not capture how investors interpret macroeconomic releases in various economic conditions. Consequently, we follow Birz and Lott (2011) and use newspaper coverage of economic releases as a measure of news. We argue that in addition to capturing the surprise component of macroeconomic releases, newspaper coverage provide interpretation of these releases similarly to how investors may interpret them in various economic conditions. Out of 15 examined international stock markets, we find that the U.S. macroeconomic news impacts stock returns of 12 countries.

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.sciedupress.com/journal/index.php/afr/article/download/8748/5405 (application/pdf)
https://www.sciedupress.com/journal/index.php/afr/article/view/8748 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jfr:afr111:v:5:y:2016:i:1:p:247

Access Statistics for this article

More articles in Accounting and Finance Research from Sciedu Press Contact information at EDIRC.
Bibliographic data for series maintained by Sciedu Press ().