Journal of
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Forum | Papers » The media effect on investors behaviour: the publication of spin-off news

The media effect on investors behaviour: the publication of spin-off news

Elvira Anna Graziano
March 2014 - n. 3
Jel codes: G14, G34

This study investigates the effect of the publication of spin-off news, published between 2000 and 2011 in the Wall Street Journal (Wsj), on the abnormal returns of companies involved in the deal. The results of the empirical analysis developed through an event study on a sample of 142 listed companies show positive and statistically significant Car in the event window (-3,3), (0,3) and (0,1) for spin-offs which news was published in the Wsj within a week of the announcement: the most important newspapers seem to affect stock prices while not providing any new information, confirming the findings of existing studies

 

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