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Can an unglamorous non-event affect prices? The role of newspapers

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  • Riccardo Ferretti
  • Andrea Cipollini
  • Francesco Pattarin

Abstract

Our paper offers evidence that the print media can affect stock prices by covering public information. After price-to-book value figures of Italian listed shares were first published on the major national financial newspaper, the prices of value stocks did, on average, show a positive reaction. The price reaction was limited to small caps stocks and disappeared within three weeks. Over the period of analysis, we could not find any abnormal behaviour of the returns of small and value stocks on other European markets. These findings support the view that newspapers play a role in disseminating information to small investors and grabbing their attention, even if news are continuously realeased by faster and more sophisticated media.

Suggested Citation

  • Riccardo Ferretti & Andrea Cipollini & Francesco Pattarin, 2016. "Can an unglamorous non-event affect prices? The role of newspapers," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1142847-114, December.
    • Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1142847
    DOI: 10.1080/23322039.2016.1142847
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