Good News, Sad Events

No News is Good News

It seems plausible that an increase in stock market volatility raises required stock returns, and thus lowers stock prices. We develop a formal model of this volatility feedback effect using a simple model of changing variance (a quadratic generalized autoregressive conditionally heteroskedastic, or QGARCH, model). Our model is asymmetric and helps to explain the negative skewness and excess ku...

NO news is good news.

How good is good news? technology depth, book-to-market ratio, and innovative events

This paper examines the stock market reactions to US biotech firms’ innovation news announcements during 1983-1993. Besides the positive abnormal returns observed during the announcement period, the paper identifies a medium-horizon negative drift in the stock price subsequent to firms’ innovative events. The observed negative drift is robust to the benchmarks and procedures used in calculating...

hiv/aids good news and bad news

The Good News and the Bad News

There is much that is attractive about Michael Burawoy’s examination of the critical turn to a public sociology. I find plausible his account of the academic nature of 1970s radical sociology especially that mobilized notions such as Althusser’s “theoretical practice.” I also was cheered to read the account of the positive developments currently in train in the USA and especially with how socia...