Front Page News: The Effect of News Positioning on Financial Markets
نویسنده
چکیده
This paper estimates the effect of presentation of information on financial markets, using a natural experiment in prominent “front page” positioning of news on the Bloomberg terminal. The front page and non-front page articles are indistinguishable by either algorithmic analysis or by the target audience of active finance professionals. Front page positioning induces 280% higher trading volumes and 180% larger price changes within the first ten minutes after news publication, followed by a strong drift for 30-45 minutes. Subsequently, non-front page news begins to catch up, but the incorporation of this information is substantially more gradual, and the initial effects of positioning persist for days after publication. The short-term effects induced by positioning are even stronger than differences between articles of varying editorial importance.
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تاریخ انتشار 2017