Coronation Day of Financial Market, Investor Attention, and Stock Return: A Perspective of Local and Global Media

Abstract

ABSTRACT We give the highest-priced stock an eye-catching heading, “Stock King,” and refer to the event that a new stock becomes the stock with the highest share price as the Stock King change event. Using data from Taiwan Stock Exchange, we divide news media into local and global media and examine how these two media react to Stock King change events, thereby affecting the return of the whole financial market and the Stock King itself. The novel finding of our study is that local and global media have very different implications on the return of the market and the Stock King. Specifically, local media coverage is more effective in increasing the whole market return, while global media coverage has a significant effect on the Stock King’s return. Finally, as for the relationship between these two media, when Stock King change events occur, our results show that local media reports have a spillover effect on global media coverage.