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.
Original languageEnglish
Pages (from-to)20-31
JournalJournal of Behavioral and Experimental Finance
Early online date22 Feb 2016
Publication statusPublished - Jun 2016


  • Media
  • Housing
  • News
  • Stock Market
  • Bubble


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