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Is public information really public? The role of newspapers

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Author Info
Riccardo Ferretti ()
Francesco Pattarin ()

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Abstract

Our paper offers evidence that printed media can affect stock prices by covering public news (nonevents) even without resorting to spin or emphasis. However, the price reaction is limited to small caps, suggesting that small investors still obtain public information mainly through newspapers. The absence of spin or emphasis is the core element that differentiates our study from existing evidence, making it unique, to the best of our knowledge, in the financial literature on the media and asset pricing.

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Publisher Info
Paper provided by Universita di Modena e Reggio Emilia, Facoltà di Economia "Marco Biagi" in its series Centro Studi di Banca e Finanza (CEFIN) (Center for Studies in Banking and Finance) with number 08013.

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Length: pages 40
Date of creation: Jan 2008
Date of revision:
Handle: RePEc:mod:wcefin:08013

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Web page: http://www.economia.unimore.it
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Related research
Keywords: nonevent; market efficiency; small investors’ trading; small caps;

Find related papers by JEL classification:
G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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