Media Coverage and Macroeconomic Information Processing
This paper investigates how media coverage influences macroeconomic information processing at the bond market. I provide evidence that a high media coverage of an economic topic increases investor attention prior to the release of the corresponding economic indicator: High media coverage of the business cycle leads to a stronger market reaction to the release of gross domestic product, industrial production and IFO business index than low media coverage. High media coverage of the price level increases the market reaction to the release of producer and consumer price index than low media coverage. High media coverage of unemployment leads to a stronger market reaction to the release of the unemployment rate than low media coverage.
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| Length: | 31 pages |
| Date of creation: | Mar 2007 |
| Date of revision: | |
| Handle: | RePEc:hum:wpaper:sfb649dp2007-011 |
| Contact details of provider: | Postal: Phone: +49-30-2093-5708 Fax: +49-30-2093-5617 Web page: http://sfb649.wiwi.hu-berlin.de Email: More information through EDIRC
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References listed on IDEAS
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