Does Negative News Reporting on the Economy Get Reflected in Companies' Business Situation?

David Iselin

No 15-388, KOF Working papers from KOF Swiss Economic Institute, ETH Zurich

Abstract: We examine the effects of negative economic news reporting on companies' self-assessment of their business situation. In order to measure this negativity effect, we introduce a new daily business indicator for the Swiss manufacturing sector and examine the influence of newspaper articles, which we scan for particular keywords, on a daily basis. We use OLS and VAR models to examine the mutual influence of negative news and the business situation of private companies. The results show a negative influence of news reporting on the self-assessment of the companies surveyed, also when controlling for the overall economic situation. However, the negative effect is not stable in all our set-ups.

Keywords: Media Data; News; Business Situation (search for similar items in EconPapers)
Pages: 24 pages
Date: 2015-06
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (4)

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Working Paper: Does Negative News Reporting on the Economy Get Reflected in Companies’ Business Situation? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:kof:wpskof:15-388

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