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The Effect of Infomation on Financial Markets: A Survey

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  • Chouliaras, Andreas

Abstract

Researchers in finance have since long ago been attempting to quantify information, and assess its impact on financial markets. Recent advances in computational linguistics, natural language processing, machine learning and econometrics, along with improved data access to media articles, online discussions and social networks, have enabled researchers to apply such techniques in multiple fields of financial research. The applications include (but are not limited to): the effect of media columns and online discussions on stock prices, the relationship between media coverage and institutional trading, the effect of media during mergers and acquisitions (M&As), and initial public offerings (IPOs). The paper surveys a key part of the literature, and discusses possibilities for further research.

Suggested Citation

  • Chouliaras, Andreas, 2016. "The Effect of Infomation on Financial Markets: A Survey," MPRA Paper 71396, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:71396
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Information; Financial Markets; Textual Analysis; News; Media.;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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