[Solomonov Seminar] 279. Solomonov seminar

[Marko Grobelnik]

V petek 26. maja 2017 ob 10:00 bo v Oranzni predavalnici IJS 279. 
Solomonov seminar. Predavalnica je v drugem nadstropju glavne stavbe IJS 
na Jamovi 39. Posnetki preteklih seminarjev so na 
http://videolectures.net/solomon/

Predavala bo Nastya Fedyk iz Harvard Business School na temo vpliva 
novic na financne trge.

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Nstya Fedyk, Harvard Business School
(http://www.hbs.edu/faculty/Pages/profile.aspx?facId=663923)

*Title: *Front Page News: The Effect of News Positioning on Financial 
Markets

*Abstract: *This paper estimates the effect of attention to news on 
financial markets, using quasi-random variation in positioning of news 
articles on the Bloomberg terminal. I focus on a category of news 
articles, some of which are pinned to the prominent "front page" 
positions at the top of the news screen in a process independent of 
their content. This offers a natural experiment in positioning between 
the articles that are pinned and those that are not. The front page and 
non-front page articles are indistinguishable by either algorithmic 
analysis, or by the target audience of active finance professionals. I 
find that pinning a news article to the front page leads to 280%  higher 
trading volumes and 180% larger price changes within the first ten 
minutes after publication. These articles also see a much stronger 
short-term price drift, with 21% higher continuation in returns at the 
five-minute level. The effect is strongest during the first 30-45 
minutes after the news, and partially reverses over subsequent hours. A 
comparison against differential reactions following news articles of 
varying editorial importance indicates that news positioning plays an 
even stronger role in driving market activity than news importance.

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