Abstract
The central role of the media for people’s minds and for capital markets has been analyzed by a broad range of literature, nourished from several strands of academic research. Applying a vector autoregression on a unique set of TV news, consumer sentiment and excess flows of mutual funds, I find evidence that daily TV news is reflected in consumer sentiment and that this reflection varies with the news topics. However, I uncover no evidence of an effect on viewers’ allocation decisions. Mutual fund investors seem to put their money neither where their newly won insights from TV news are, nor where their sentiment is. The findings are robust to different measures of the fund flows and an alternative indicator for the news sentiment. The results indicate a direction for further studies on a more micro level.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
