The direction of media influence: Real-estate news and the stock market

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      This paper uses a novel identification strategy to test the influence of news media on the stock market. Because the stock market does not impact the media coverage of the housing market, a relationship between real-estate news and shares of companies engaged in the housing market is attributable media influence. I find that the content of reporting exhibits a significant relationship with stock returns, and the amount of news with the number of trades. These relationships exist even after controlling for known risk factors, housing market performance and intra-week correlation. This finding is consistent with the function of the media as a source of information and sentiment in financial markets.


      • The direction of media influence: Real-estate news and the stock market

        Rights statement: © 2016 Elsevier. This manuscript version is made available under the CC-BY-NC-ND 4.0 license which permits distribution and reproduction for non-commercial purposes, provided the author and source are cited.

        Accepted author manuscript, 2 MB, PDF-document


      Original languageEnglish
      Pages (from-to)20-31
      JournalJournal of Behavioral and Experimental Finance
      Journal publication dateJun 2016
      Early online date22 Feb 2016
      StatePublished - Jun 2016

        Research areas

      • Media, Housing, News, Stock Market, Bubble

      ID: 18691671