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The "news" effect on some financial variables

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Author Info
Elena Corallo () (Cattaneo University (LIUC))
Abstract

The aim of this work is to verify whether the price of a bank quoted in the stock market is affected by two types of news: news coming from the market and announces defined "price sensitive" publicly released by the bank. Making use of a methodology based on heteroskedasticity, proposed in the literature by Rigobon and Sack (2003), we verify whether the price of Unicredit, which is one of the biggest Italian bank and which is characterised by a high exchange of stocks, are influenced in a significant way by announces of interest rate changes, released by the Monetary Authority and by news which affect the value of the bank, released by the bank itself.

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Paper provided by Cattaneo University (LIUC) in its series LIUC Papers in Economics with number 172.

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Length: 20 pages
Date of creation: Jun 2005
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Handle: RePEc:liu:liucec:172

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This page was last updated on 2009-11-25.


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