News media and investor sentiment over the long run

Arbeitspapier

This paper studies the effect of investor sentiment on the London stock market on a daily basis over the period 1899 to 2010. We use a broad mix of reporting from the Financial Times as our proxy for investor sentiment. The main contribution of this paper is threefold. First, newspaper commentary, which was sentiment-laden, but information-light, in the Financial Times affects returns. Second, we find evidence that sentiment plays a role in propagating price movements, particularly during bull markets. Third, we find little evidence that the effect of sentiment on the market differs in bear versus bull markets.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: QUCEH Working Paper Series ; No. 2017-06

Classification and Topics

• Classification: Wirtschaft ; Asset Pricing; Trading Volume; Bond Interest Rates ; Economic History: Financial Markets and Institutions: Europe: Pre-1913 ; Economic History: Financial Markets and Institutions: Europe: 1913-
• Subject: news media ; investor sentiment ; stock market ; bull ; bear

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hanna, Alan J. ; Turner, John D. ; Walker, Clive B.
• Event: Veröffentlichung
• (who): Queen's University Centre for Economic History (QUCEH)
• (where): Belfast
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/168364
• Last update: 10.03.2025, 11:41 AM CET