Political polarization in financial news

• 成果类型: Article
• 署名作者: Goldman, Eitan; Gupta, Nandini; Israelsen, Ryan
• 署名单位: Indiana University System; Indiana University Bloomington; IU Kelley School of Business; Michigan State University; Michigan State University's Broad College of Business
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2024.103816
• 发表日期: 2024
• 关键词: media bias; Financial news; Finance and politics; Textual analysis; trading volume

摘要

Comparing coverage of the same corporate financial news by the conservative Wall Street Journal and the liberal New York Times , we find strong evidence of political polarization in their reporting on both the intensive and extensive margins of coverage. We show that this politics-induced disagreement in corporate financial news leads to an increase in abnormal trading volume for the most politically extreme firms. Our results highlight a new source of investor disagreement, arising out of polarized reporting of corporate financial news, that generates trade among investors.