The Impact of Corporate Governance Press News on Stock Market Returns
Alessandro Carretta (),
Vincenzo Farina (),
Franco Fiordelisi and
European Financial Management, 2011, vol. 17, issue 1, 100-119
Stock market prices reflect information regarding firmsâ€™ 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 investorsâ€™ behaviour. We analyses these aspects focussing on a large sample of corporate governance news published between 2003 and 2007 in â€˜Il Sole 24 Oreâ€™, 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.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:eufman:v:17:y:2011:i:1:p:100-119
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1354-7798
Access Statistics for this article
European Financial Management is currently edited by John Doukas
More articles in European Financial Management from European Financial Management Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().