Media Bias in Financial Newspapers: Evidence from Early 20th Century France
AbstractThe financial market was very developed in France in the years before World War I and subsequently many newspapers provided information to investors. Yet, contemporaries blamed the inaccuracy and biases of the financial press. This study implements a quantitative test to assess this judgment. The results show that although the firms’ media coverage were impacted by the fact that firms paid to appear in newspapers, the performance of the firms selected by the media was pretty good. A better explanation of the bias is then that newspapers choose firms according to their editorial policy and that they were able to make firms paid for that.
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Bibliographic InfoPaper provided by University of Paris West - Nanterre la Défense, EconomiX in its series EconomiX Working Papers with number 2009-4.
Length: 44 pages
Date of creation: 2009
Date of revision:
Media coverage; financial newspapers; media bias; information on the financial market;
Other versions of this item:
- Bignon, Vincent & Miscio, Antonio, 2010. "Media bias in financial newspapers: evidence from early twentieth-century France," European Review of Economic History, Cambridge University Press, vol. 14(03), pages 383-432, December.
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
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- Campbell, Gareth & Turner, John D. & Walker, Clive B., 2012. "The role of the media in a bubble," Explorations in Economic History, Elsevier, vol. 49(4), pages 461-481.
- Bignon, Vincent & Flandreau, Marc, 2011.
"The Economics of Badmouthing: Libel Law and the Underworld of the Financial Press in France Before World War I,"
The Journal of Economic History,
Cambridge University Press, vol. 71(03), pages 616-653, September.
- Vincent Bignon, Marc Flandreau, 2010. "The Economics of Badmouthing: Libel Law and the Underworld of the Financial Press in France before World War I," IHEID Working Papers 15-2010, Economics Section, The Graduate Institute of International Studies.
- Vincent Bignon & Marc Flandreau, 2010. "The Economics of Badmouthing: Libel Law and the Underworld of the Financial Press in France before World War I," EconomiX Working Papers 2010-18, University of Paris West - Nanterre la Défense, EconomiX.
- Vincent Bignon, Marc Flandreau, 2012.
"The Price of Media Capture and the Looting of Newspapers in Interwar France,"
IHEID Working Papers
09-2012, Economics Section, The Graduate Institute of International Studies.
- Bignon, Vincent & Flandreau, Marc, 2012. "The Price of Media Capture and the Looting of Newspapers in Interwar France," CEPR Discussion Papers 9014, C.E.P.R. Discussion Papers.
- Balmer, Roberto, 2013. "Entry and Competition in Local Newspaper Retail Markets - When two are enough," MPRA Paper 54079, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valérie Mignon).
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