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1 – 10 of over 95000Although the effects of both news sentiment and expectations on price in financial markets have now been extensively demonstrated, the jointness that these predictors can have in…
Abstract
Purpose
Although the effects of both news sentiment and expectations on price in financial markets have now been extensively demonstrated, the jointness that these predictors can have in their effects on price has not been well-defined. Investigating causal ordering in their effects on price can further our understanding of both direct and indirect effects in their relationship to market price.
Design/methodology/approach
We use autoregressive distributed lag (ARDL) methodology to examine the relationship between agent expectations and news sentiment in predicting price in a financial market. The ARDL estimation is supplemented by Grainger causality testing.
Findings
In the ARDL models we implement, measures of expectations and news sentiment and their lags were confirmed to be significantly related to market price in separate estimates. Our results further indicate that in models of relationships between these predictors, news sentiment is a significant predictor of agent expectations, but agent expectations are not significant predictors of news sentiment. Granger-causality estimates confirmed the causal inferences from ARDL results.
Research limitations/implications
Taken together, the results extend our understanding of the dynamics of expectations and sentiment as exogenous information sources that relate to price in financial markets. They suggest that the extensively cited predictor of news sentiment can have both a direct effect on market price and an indirect effect on price through agent expectations.
Practical implications
Even traditional financial management firms now commonly track behavioral measures of expectations and market sentiment. More complete understanding of the relationship between these predictors of market price can further their representation in predictive models.
Originality/value
This article extends the frequently reported bivariate relationship of expectations and sentiment to market price to examine jointness in the relationship between these variables in predicting price. Inference from ARDL estimates is supported by Grainger-causality estimates.
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Heng (Emily) Wang and Xiaoyang Zhu
The dissemination of misleading and false information through media can jeopardize a company’s reputation, thus posing a threat to its stock and performance. Institutional…
Abstract
Purpose
The dissemination of misleading and false information through media can jeopardize a company’s reputation, thus posing a threat to its stock and performance. Institutional investors are known to influence capital markets. Therefore, this paper investigates whether institutional investors engage in shaping the media sentiment stock nexus, stabilize company stocks and enhance performance.
Design/methodology/approach
We first investigate the effect of media sentiment on market reactions by using panel regression models. To examine the role of institutional investors, we design a quasi-experiment by exploiting the Financial Crisis of 2008 and go further by examining the heterogeneity across levels of institutional ownership. Due to risk-averse, investors may respond asymmetrically to pessimistic and positive sentiment. Accordingly, we split the sample into two sub-types, good news and bad news, based on keywords representing positive or negative content.
Findings
We find supportive evidence that institutional investors have impacts on how the markets react to media news, and the impacts are heterogeneous in the face of bad and good news. We conjecture that institutional investors act as a stabilizer of stock prices through media sentiment management.
Originality/value
This paper confirms the distinctive effects of institutional investors on capital markets, and uncovers the behind-the-scenes intervention and possible causal link running from institutional investors to media sentiment management. It contributes to the broad field of institutional investors' behavior, media news involvement in capital markets and market efficiency.
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Bahiyah Omar, Hosam Al-Samarraie, Ahmed Ibrahim Alzahrani and Ng See Kee
Most new media research focuses on behavior as a measure of engagement, while the psychological state of being occupied with its content has received little attention. This study…
Abstract
Purpose
Most new media research focuses on behavior as a measure of engagement, while the psychological state of being occupied with its content has received little attention. This study examined news engagement beyond pure action observation by exploring young people’s psychological experiences with the news.
Design/methodology/approach
The study carried out a digital native’s survey on 212 people (18–28 years). The focus of the survey was on understanding individuals’ engagement with online news using affective and cognitive components. The authors compared the influence of each type of engagement on youth consumption of and attitudes toward online news.
Findings
The results of the hierarchical regression analysis showed that affective engagement can be a stronger predictor of online news consumption than cognitive engagement. While affective engagement significantly predicts positive attitudes toward online news, cognitive engagement had no significant effect.
Originality/value
These findings suggest that “engaging the heart” is more influential than “engaging the mind” in drawing young people to the news in today’s information environment. The study thus contributes to the understanding of the cognitive and emotional focus on news content and their importance in shaping young people’s expectations of online news. The findings from this study could have broader implications for future trends in online news consumption.
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Olivia Stacie-Ann Cleopatra Bravo and Sindy Chapa
This exploratory research examined how emphasizing a brand’s unethical behaviour through high moral intensity news framing influences consumer boycott intention.
Abstract
Purpose
This exploratory research examined how emphasizing a brand’s unethical behaviour through high moral intensity news framing influences consumer boycott intention.
Design/methodology/approach
The hypotheses were tested and validated using two experimental studies that expose customers of real retail and personal care product brands to news articles that have high and low moral intensity news frames.
Findings
The results showed high moral intensity news framing’s positive effect on consumer boycott intention. The frame’s influence is moderated by moral awareness and partially mediated by perceived moral intensity and moral judgement. The findings suggest that consumers’ perception of the frame and their attitude towards the brand will have a substantial role in boycott intention.
Practical implications
These research outcomes aid in the understanding of news framing effects on boycott intention, providing both insights for consumer activists and managerial implications for stewards of brands.
Originality/value
While previous research have examined the impact of news frames on the typical audience, there has been relatively little focus on news framing’s impact on consumers and their decision to boycott brands. This study addresses this gap by applying the work on emphasis framing to a consumer decision-making context. It also introduces moral intensity framing to the news frame classification. In addition, this study expands current conceptualizations of individual ethical decision-making to help explain consumer boycott intent.
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Cheryl Ann Lambert, Michele E. Ewing and Toqa Hassan
Fake news stories have become a central element of crises that corporate public relations practitioners have confronted. Whether such stories are rumors, outright lies or…
Abstract
Purpose
Fake news stories have become a central element of crises that corporate public relations practitioners have confronted. Whether such stories are rumors, outright lies or deliberate attempts to discredit corporations, they have the same impact and require specific strategies for public relations practitioners to effectively respond. The purpose of this study is to uncover strategies to manage crises that arise from fake news and if and how these strategies differ for other corporate crises.
Design/methodology/approach
In this multi-method study of 21 in-depth interviews and a 8-person focus group with senior-level corporate public relations practitioners, authors explored decision-making strategies for responding to fake news crises. Transcripts of interviews and the focus group were thematically analyzed.
Findings
Results reveal insights regarding how public relations practitioners determine if and when to respond to fake news crises in corporations; what response strategies public relations practitioners have the autonomy to employ for fake news crises in corporations, and how public relations practitioners control media narratives during fake news crises in corporations.
Practical implications
The findings guide public relations practitioners to craft an autonomous decision-making process and effective online listening strategies—establishing a watchful waiting approach—and determine if the fake news issue is a passing moment or movement swirling into a crisis.
Originality/value
Few studies have examined the perspectives of crisis communication experts about minimizing and managing fake news crises. The study identifies opportunities for future research focused on crises originating from fake news and disinformation.
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Xinyu Liu, Kun Ma, Ke Ji, Zhenxiang Chen and Bo Yang
Propaganda is a prevalent technique used in social media to intentionally express opinions or actions with the aim of manipulating or deceiving users. Existing methods for…
Abstract
Purpose
Propaganda is a prevalent technique used in social media to intentionally express opinions or actions with the aim of manipulating or deceiving users. Existing methods for propaganda detection primarily focus on capturing language features within its content. However, these methods tend to overlook the information presented within the external news environment from which propaganda news originated and spread. This news environment reflects recent mainstream media opinions and public attention and contains language characteristics of non-propaganda news. Therefore, the authors have proposed a graph-based multi-information integration network with an external news environment (abbreviated as G-MINE) for propaganda detection.
Design/methodology/approach
G-MINE is proposed to comprise four parts: textual information extraction module, external news environment perception module, multi-information integration module and classifier. Specifically, the external news environment perception module and multi-information integration module extract and integrate the popularity and novelty into the textual information and capture the high-order complementary information between them.
Findings
G-MINE achieves state-of-the-art performance on both the TSHP-17, Qprop and the PTC data sets, with an accuracy of 98.24%, 90.59% and 97.44%, respectively.
Originality/value
An external news environment perception module is proposed to capture the popularity and novelty information, and a multi-information integration module is proposed to effectively fuse them with the textual information.
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Elena Fedorova and Polina Iasakova
This paper aims to investigate the impact of climate change news on the dynamics of US stock indices.
Abstract
Purpose
This paper aims to investigate the impact of climate change news on the dynamics of US stock indices.
Design/methodology/approach
The empirical basis of the study was 3,209 news articles. Sentiment analysis was performed by a pre-trained bidirectional FinBERT neural network. Thematic modeling is based on the neural network, BERTopic.
Findings
The results show that news sentiment can influence the dynamics of stock indices. In addition, five main news topics (finance and politics natural disasters and consequences industrial sector and Innovations activism and culture coronavirus pandemic) were identified, which showed a significant impact on the financial market.
Originality/value
First, we extend the theoretical concepts. This study applies signaling theory and overreaction theory to the US stock market in the context of climate change. Second, in addition to the news sentiment, the impact of major news topics on US stock market returns is examined. Third, we examine the impact of sentimental and thematic news variables on US stock market indicators of economic sectors. Previous works reveal the impact of climate change news on specific sectors of the economy. This paper includes stock indices of the economic sectors most related to the topic of climate change. Fourth, the research methodology consists of modern algorithms. An advanced textual analysis method for sentiment classification is applied: a pre-trained bidirectional FinBERT neural network. Modern thematic modeling is carried out using a model based on the neural network, BERTopic. The most extensive topics are “finance and politics of climate change” and “natural disasters and consequences.”
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Ming-Chang Wang, Yu-Feng Hsu and Hsiang-Ying Chien
This study investigates the media activities of firms issuing private equity placements and seasoned equity offerings in Taiwan, as firms have incentives to manage media coverage…
Abstract
Purpose
This study investigates the media activities of firms issuing private equity placements and seasoned equity offerings in Taiwan, as firms have incentives to manage media coverage to influence their stock prices during private equity placement.
Design/methodology/approach
We collect a corpus of news stories and transform the news into term sets based on the part of speech. Then, we refer to Cecchini et al. (2010) to classify the news terms into positive, negative, and usual categories. Next, we employ the SVM algorithm to perform the classification tasks and the term frequency method to perform the text mining task. In last, we use a multiple regression model to verify the hypotheses.
Findings
We determine that issuing firms in a private placement have substantially more positive news stories and fewer negative news stories than those in public offerings. Furthermore, we evidence that the media management effects of postequity issues are more active than those of preequity issues. Finally, our results demonstrate that the timing and content of financial media coverage among different equity issuance methods may be biased by firm management. According to previous studies, they may attempt to manipulate stock prices to increase the number of highly profitable insider stakeholders.
Originality/value
To our knowledge, this is the first study to investigate that if private placement will associate with more active media management than the public offerings. According to our results of the difference-in-means test, the public offerings market may control news coverage; however, this result is inconsistent with that of the regression results. The private placements market may also exercise media management in the “before announcement day” and “after announcement day” periods by increasing positive news and reducing negative news.
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Nikolaos Eriotis, Costandinos Siriopoulos, Dimitrios Vasiliou and Vasileios Zisis
Prior evidence suggests the existence of asymmetric timeliness in the reporting of good and bad news of firms that trade in the Athens Stock Exchange. The purpose of this paper is…
Abstract
Purpose
Prior evidence suggests the existence of asymmetric timeliness in the reporting of good and bad news of firms that trade in the Athens Stock Exchange. The purpose of this paper is to explore whether these results are consistent with inferences related to persistence property of earnings for firms that trade in the Athens Stock Exchange.
Design/methodology/approach
The research design employs both level regression specification and change regression specification and it is based on pool cross‐sectional regressions. Empirical results after classifying observations are reported based on both the sign of prior period and current period firms' return, while a number of sensitivity tests are employed.
Findings
According to prior evidence, bad news is recorded more timely than good news but in an unbiased and non‐conservative way. This implies that earnings shocks of firms with bad news should present persistence. Results from an ex‐ante perspective verify these arguments while results from an ex‐post perspective do not.
Originality/value
In contrast to other studies that report results that, in bad news periods, firms' earnings tend to present lower persistence than firms' earnings in good news periods, because managers conservatively report bad news, this paper focuses on a sample of firms that seems to report bad news in a timely way.
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This paper aims to take, as a starting point, the contribution of audiovisual documentation to TV news programs, the impact of digitalisation in the organisation and design of…
Abstract
Purpose
This paper aims to take, as a starting point, the contribution of audiovisual documentation to TV news programs, the impact of digitalisation in the organisation and design of audiovisual documentation's services is analysed.
Design/methodology/approach
Data, collected by a quantitative and qualitative research on: the use of audiovisual documentation in the news, documentation requests processed by journalists, and the study of the operation of documentation services of six TV stations, serve as a basis to analyse the factors that must be taken into account when it comes to designing query systems of digital audiovisual documentation, so that these systems meet the needs of journalists and can be used with satisfactory results by the users.
Findings
Audio‐visual documentation is one of the constituent elements of TV information on current events, as much for its quantitative presence (40 percent of the news) as for its qualitative contribution to news messages, as well as for its general use in all the news sections. Audiovisual documentation has a greater presence in important news, and can carry out informative, completive or illustrative functions. News programs use the audiovisual documentation that these same programs have generated, using it mainly as a purely visual documentation. In documentation services, the journalist asks mainly for people's images and, to a lesser extent, formal groups and the news. A second group of categories collects around 10 percent of requests: places, animal‐thing, natural phenomena, informal group; while the remaining categories (concept and work) have a marginal incidence. The analysis of documentation use in the news, as well as of the content of requests made by the journalists, offers important clues when it come to designing documentary information systems, specially regarding the analysis of audiovisual douments and databases' query, used directly by the end user.
Research limitations/implications
Collected data regarding analogue TV are used to make forecasts about what should be documentation in digital TV.
Originality/value
The detailed analysis of the use of audiovisual documentation in the news, as well as of the requests made by the journalists to documentation services, constitutes an important guide when it comes to successfully designing the new digital systems of audiovisual documentation.
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