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Media Coverage and Stock Returns: Evidence from Chinese Cross-Listed Firms

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Book cover Experiences and Challenges in the Development of the Chinese Capital Market

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Abstract

The media, such as newspapers and TV broadcasting, serves as an important outlet for disseminating information to the general public. Because information covered in the media could be obtained from other sources, such information is regarded as “stale information” (Tetlock, 2008) or “second-hand information” (Davies and Canes, 1978). According to the semi-strong form of the Efficient Market Hypothesis (Fama, 1970, 1991), the stock price should immediately reflect all publicly available information, implying that the information provided by the media should have little effect on stock prices. However, recent studies show that the news covered by the media does have an impact on stock returns (Tetlock, 2007, 2008; Tetlock et al., 2008; Fang and Peress, 2009).

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Author information

Authors and Affiliations

  1. International Business School Suzhou, Xi’an Jiaotong-Liverpool University, 111 Ren’ai Road, Suzhou, 215123, China

    Chen Wang

  2. Warwick Business School, University of Warwick, Scarman Road, Coventry CV4 7AL, UK

    Rong Ding

  3. University of Edinburgh Business School, University of Edinburgh, 29 Buccleuch Place, Edinburgh, EH8 9JS, UK

    Wenxuan Hou

  4. Manchester Business School, The University of Manchester, Crawford House, Oxford Rd, Manchester, M13 9PL, UK

    Edward Lee

Authors
  1. Chen Wang
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  2. Rong Ding
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  3. Wenxuan Hou
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  4. Edward Lee
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Editor information

Editors and Affiliations

  1. Schulich School of Business, York University, Canada

    Douglas Cumming (Professor and Ontario Research Chair) (Professor and Ontario Research Chair)

  2. University of Birmingham, UK

    Alessandra Guariglia (Professor of Financial Economics) (Professor of Financial Economics)

  3. The University of Edinburgh Business School, UK

    Wenxuan Hou (Reader in Finance) (Reader in Finance)

  4. Manchester Business School, UK

    Edward Lee (Professor of Accounting and Finance) (Professor of Accounting and Finance)

Copyright information

© 2015 Chen Wang, Rong Ding, Wenxuan Hou, and Edward Lee

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Wang, C., Ding, R., Hou, W., Lee, E. (2015). Media Coverage and Stock Returns: Evidence from Chinese Cross-Listed Firms. In: Cumming, D., Guariglia, A., Hou, W., Lee, E. (eds) Experiences and Challenges in the Development of the Chinese Capital Market. Palgrave Macmillan, London. https://doi.org/10.1057/9781137454638_9

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