COVID-19: Media coverage and financial markets behavior—A sectoral inquiry

We analyze the relationship between sentiment generated by coronavirus-related news and volatility of equity markets. The ongoing coronavirus outbreak (COVID-19) resulted in unprecedented news coverage and outpouring of opinions in this age of swift propagation of information. Ensuing uncertainty in...

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Detalles Bibliográficos
Autores principales: Haroon, Omair, Rizvi, Syed Aun R.
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier B.V. 2020
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7227534/
https://www.ncbi.nlm.nih.gov/pubmed/32427152
http://dx.doi.org/10.1016/j.jbef.2020.100343
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author Haroon, Omair
Rizvi, Syed Aun R.
author_facet Haroon, Omair
Rizvi, Syed Aun R.
author_sort Haroon, Omair
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description We analyze the relationship between sentiment generated by coronavirus-related news and volatility of equity markets. The ongoing coronavirus outbreak (COVID-19) resulted in unprecedented news coverage and outpouring of opinions in this age of swift propagation of information. Ensuing uncertainty in financial markets leads to heightened volatility in prices. We find that overwhelming panic generated by the news outlets are associated with increasing volatility in the equity markets. Our results for individual economic sectors demonstrate that panic-laden news contributed to a greater extent to volatility in the sectors perceived to be most affected by coronavirus outbreak.
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spelling pubmed-72275342020-05-18 COVID-19: Media coverage and financial markets behavior—A sectoral inquiry Haroon, Omair Rizvi, Syed Aun R. J Behav Exp Finance Article We analyze the relationship between sentiment generated by coronavirus-related news and volatility of equity markets. The ongoing coronavirus outbreak (COVID-19) resulted in unprecedented news coverage and outpouring of opinions in this age of swift propagation of information. Ensuing uncertainty in financial markets leads to heightened volatility in prices. We find that overwhelming panic generated by the news outlets are associated with increasing volatility in the equity markets. Our results for individual economic sectors demonstrate that panic-laden news contributed to a greater extent to volatility in the sectors perceived to be most affected by coronavirus outbreak. Elsevier B.V. 2020-09 2020-05-15 /pmc/articles/PMC7227534/ /pubmed/32427152 http://dx.doi.org/10.1016/j.jbef.2020.100343 Text en © 2020 Elsevier B.V. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Haroon, Omair
Rizvi, Syed Aun R.
COVID-19: Media coverage and financial markets behavior—A sectoral inquiry
title COVID-19: Media coverage and financial markets behavior—A sectoral inquiry
title_full COVID-19: Media coverage and financial markets behavior—A sectoral inquiry
title_fullStr COVID-19: Media coverage and financial markets behavior—A sectoral inquiry
title_full_unstemmed COVID-19: Media coverage and financial markets behavior—A sectoral inquiry
title_short COVID-19: Media coverage and financial markets behavior—A sectoral inquiry
title_sort covid-19: media coverage and financial markets behavior—a sectoral inquiry
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7227534/
https://www.ncbi.nlm.nih.gov/pubmed/32427152
http://dx.doi.org/10.1016/j.jbef.2020.100343
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