The ups and downs of Wirecard AG: An application of the reversed news model

Georg Stadtmann and Carsten Croonenbroeck

No 414, Discussion Papers from European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics

Abstract: In early 2019, the stock prices of the German company Wirecard AG experienced market turmoil after several critical reports on activities claimed to be illegal. To analyze the market impact of news, we use stock price data for Wirecard AG and apply the reversed news model. We elaborate on whether new information can explain subsequent changes in the stock price. We find that articles published in the Financial Times as well as investor communications were important drivers of the stock price.

Keywords: News Model; Stock Market Efficiency; Event Study (search for similar items in EconPapers)
JEL-codes: D82 G14 G32 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-cfn
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:euvwdp:414

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