Studying the Impact of Media Coverage on the Stock Market Using Mediating Effects

Abstract

As a publisher of information on capital market transactions, media coverage has become a hot topic of research for modern scholars. In this paper, stocks with trading data within 2013.1.1-2020.1.1 on the SSE and SZSE are used as research samples, and the number of media reports, investor sentiment, and stock returns are used as core variables, to investigate the transmission relationship between these three things by using a mediating effect model. The relationship between the three variables is reported systematically and directly. This study concludes that investor sentiment plays a partially mediating role in the impact of media attention on the stock market. Investor sentiment as a medium of media information translates perceptions into behavior and thus influences investors' investment decisions. The news gives investors some informational advantage reduced the level of information asymmetry and has the most pronounced impact on investors, media involvement diminishes the role of investor sentiment on stock investments.