Media and Investment Management

This study measures the differential impact of alternative media outlets.

Author(s) :

Gideon Ozik

EDHEC Business School

Ronnie Sadka

Boston College, Carroll School of Management, Chestnut Hill, Massachusetts

We classify news items about equity hedge funds over 1999-2008 into three source groups: General newspapers, Specialized magazines, and Corporate Communication. Applying a textual analysis to news items, we uncover three types of media biases. First, a reporting style bias, that is, when a fund is covered by multiple sources at the same time, the sentiment is most positive in Corporate coverage and least in General coverage. The differences in source sentiment are more significant in cases of exclusive coverage, indicating a second bias, editorial selection. Finally, examining post-coverage, sentiment-adjusted fund performance, we document that Corporate-covered funds outperform and General-covered funds underperform, with a performance difference of about 11% annually. This result suggests a content bias, consistent with fund managers presenting conservative, pessimistic forecasts, while reporters present relatively more optimistic views. However, investor fund flow does not react to this information, which suggests that investors do not seem to exploit valuable information embedded in media coverage.
Pdf
Media and Investment Management...
(-1.00 B)
Type : Working paper
Date : le 31/01/2011
Extra information : For more information, please contact Joanne Finlay, EDHEC Research and Development Department [ joanne.finlay@edhec.edu ] The contents of this paper do not necessarily reflect the opinions of EDHEC Business School.
Research Cluster : Finance

See Also

Actualités
- 10-12-2017
    A very high-level programme offering unique learning experiences Four partners at the forefront of innovation in their fields of expertise   Press Release   Lille...
FT European Business School rankings 2017: EDHEC cements its position among the top 15
Actualités
- 04-12-2017
EDHEC Business School has consolidated its standing among the top 15 business schools...
QS Ranking 2018: EDHEC Global MBA among best programmes in Europe and worldwide
Actualités
- 28-11-2017
EDHEC Global MBA ranked as the 15th MBA in Europe and 29th MBA in the world : the...
Dean of Sungkyunkwan Graduate School of Business visits EDHEC Business School
Actualités
- 27-11-2017
Dean of SKK GSB visits EDHEC Business School in the framework of strategic agreement...