[Solomonov Seminar] 279. Solomonov seminar

Marko Grobelnik marko.grobelnik at ijs.si
Wed May 24 13:29:26 CEST 2017

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 

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


Nstya Fedyk, Harvard Business School

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

*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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