EconPapers    
Economics at your fingertips  
 

Financial press and stock markets in times of crisis

Roberto Casarin and Flaminio Squazzoni
Additional contact information
Flaminio Squazzoni: Department of Social Studies, University of Brescia

No 2012_04, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: This paper investigates the relationship between negative news in financial newspapers and stock markets in times of global crisis, such as the 2008/2009 period. We analysed one year of front page banner headlines of three financial newspapers, such as the Wall Street Journal, Financial Times, and Il Sole24ore and created an index of bad news at a daily base. We examined the influence of bad news both on market volatility and dynamic correlation of American, Britain and Italian stock markets to look at the impact of bad news on global investment strategies. Our results show that press and markets co-influenced each other in generating market volatility. The three newspapers showed significant differences in their stance on the crisis, with Financial Times more pessimistic. Our results also show that Wall Street Journal bad news had higher predictability value for the correlation between US and the foreign markets. This confirms the international influence of Wall Street Journal.

Keywords: 2008/2009 financial crisis; financial press; bad news; market volatility; dynamic correlation; Wall Street Journal; pessimism. (search for similar items in EconPapers)
JEL-codes: C58 G14 G15 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2012
New Economics Papers: this item is included in nep-fmk
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.unive.it/web/fileadmin/user_upload/dip ... _squazzoni_04_12.pdf First version, 2012 (application/pdf)

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:ven:wpaper:2012_04

Access Statistics for this paper

More papers in Working Papers from Department of Economics, University of Venice "Ca' Foscari" Contact information at EDIRC.
Bibliographic data for series maintained by Sassano Sonia ().

 
Page updated 2025-03-22
Handle: RePEc:ven:wpaper:2012_04